Homes prices feeling squeeze
HOUSE prices fell at their fastest rate for more than two years during October as would-be buyers continued to stay away from the market, figures showed today.
The Royal Institution of Chartered Surveyors said the cost of property in the UK fell for the third month in a row in October and at its fastest pace since July 2005.
At the same time the number of people looking to buy a home fell for the 11th consecutive month as a combination of higher interest rates, the recent credit crunch and tighter lending criteria from mortgage lenders hit demand.
But the group said a shortage of homes being put up for sale continued to prop up the market.
It said the number of people looking to sell their home fell for the fifth month in a row as owners were under little pressure to sell while the economy remained fundamentally sound.
But despite this, surveyors’ confidence in house prices going forward has reached its lowest level since April 2003.
RICS spokesman Ian Perry said: “The housing market is seeing the awaited slowdown that many had been expecting.”
