RICS UK Housing Market Survey July 2010

More chartered surveyors reported a fall than a rise in house prices for the first time since July 2009 as demand from purchasers slipped back and the number of properties coming to the market continued to increase, says the latest RICS UK Housing Market survey.

Eight per cent more surveyors reported a fall rather than rise in house prices - the lowest reading in more than a year, when 16 per cent more reported price falls.

In contrast, last month saw eight per cent more surveyors reporting rising, not falling prices. Regionally, the only areas which continued to see material price rises in the past month were London and the North West.

The fall in the RICS house price measure is broadly consistent with most other recent data that has been released. This is a reflection of both the increase in supply following the scrapping of HIPS and the more cautious stance from buyers.
Significantly, the forward looking price expectations numbers suggest that this softer trend will continue through the second half of the year. However, agents are still generally optimistic about sales activity which should benefit from more realistic pricing of properties.