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House prices decline in England but rise in Scotland

11/03/2008

The balance of Chartered Surveyors reporting house price falls has increased to almost record levels, the Royal Institution of Chartered Surveyors (Rics) has said.

In the Rics UK housing market survey published today, 64.1 per cent more Chartered Surveyors reported a drop in house prices; an increase from 54.7 per cent in January.

The increase almost eclipsed the historical low on 64.5 per cent in June 1990.

However, in Scotland the story is very much different, with the number of surveyors reporting house price rises up from 7 per cent to 25 per cent.

The rise confirms the Scottish housing market as the best buoyant in the UK, the report claims.

Enquiries by new buyers into buying property were also down, reported the Chartered Surveyors, with 37 per cent more claiming a fall in new buyer enquiries.

Weak demand for property as opposed to an influx on new supply is being credited for the fall in house prices.

The lack of demand is recognised in the fact that the number of unsold properties on surveyor's books increased by 8.5 per cent in February.

Rics spokesman, Ian Perry, said of the survey's results: "Confidence in the market is clearly having an effect on prices. A combination of a lack of available finance and weakening demand is causing a slow drop in capital values.

"While there is very little new supply coming into the market, it is unlikely that there will be significant price drops in the short term but the build up of unsold stock will encourage buyers to negotiate lower asking prices."