Prices are still under pressure, say surveyors

During June, 12% more chartered surveyors in England and Wales reported seeing house price falls than those who said there had been rises.

The RICS housing market survey - based on the views of estate agents and surveyors - has shown a fall in UK house prices for most of 2003, prompting some commentators to warn that a housing market crash may be around the corner.

But the survey noted that the number of buyers was on the increase and the gap between pessimistic and optimistic surveyors was narrowing.

RICS said the property market was showing some signs of stabilising as confidence returned following the end of the war in Iraq.

London leads the way

Back in May, across England and Wales 26% more surveyors were reporting price falls instead of rises. This gap has now narrowed.

The number of surveyors reporting greater numbers of buyer enquiries rose to 10% in June, the highest level since April 2002.

Surveyors are still feeling confident of a rebound in the market based on low interest rates and a steady labour market Ian Perry RICS spokesman

However, the number of properties sold fell to its lowest level for two and a half years,

In recent months, London has led the way in price falls with the overheated South East, East Anglia and South West following suit.

But RICS are reporting price falls easing back in these areas, particularly in the South East and South West.

At the other end of the scale, prices continued to rise in northern regions and Wales, although at a slightly slower rate in Yorkshire and Humberside and the North.

Overall, RICS spokesman Ian Perry remains bullish about the prospects for house prices to pick up again, despite another month of falls.

"Surveyors are still feeling confident of a rebound in the market based on low interest rates and a steady labour market," he said.

Have you been affected by fluctuating house prices? Are you going to buy or sell your property in the current climate?

Your reaction

The sooner prices crash the better! We bought a shared ownership property last year and it has doubled in value in the two years since the price was agreed. Our share may have doubled but we have no chance of purchasing the 2nd half until prices come back down. Until then we are stuck.
Andrew, Birmingham, England

I am a first-time buyer. I have a significant amount of money saved, but am unsure whether the market is going up or down. I am holding out to see whether I can get further reductions on properties and get a better return on my first big investment.

I think I am of typical of many first-time buyers who missed out on the massive rises in recent years. We want a slice of that cake and are not willing to pay the huge prices being asked for mediocre properties in London. I believe the market is realigning itself to become more realistic.
Jon, UK

House prices aren't falling across the country. As ever the news headlines are based on what's happening in the south with a small paragraph somewhere in the middle saying "actually the prices are going up in much of the rest of the country".

We recently sold our house and sold it for more than it was valued at six months previously. A number of people we spoke to were worried about the doom and gloom stories in the national press, but all knew that what was happening 150 miles away was not necessarily the same case here.
Phil, England

There are too many greedy/panicking people forcing FTBs into crippling debt (if they can get on the housing ladder at all). The sooner the crash comes the better - sadly, people are going to suffer, but let's keep the number of people down, and give the rest of us a chance to own our own homes.
Stephanie Clarke, Cambridge, UK

I live in London and plan to trade up from a one-bed flat, but I'm now holding back because I feel that real bargains will start to emerge in the next twelve months - I don't want to move too soon!
Don, UK

Properties are being increasingly bought up by landlords/rental agencies, who have the financial clout to do this. Unfortunately this only exasperates the problem by reducing the number of available properties and hence increasing the price.
Rob Pollard, UK