–RICS: Net -32% Surveyors Saw UK House Prices Fall In Aug vs -8% Jul
–RICS: Aug Sales To Stocks Ratio 24.7 Vs Jul’s 24.0
–RICS: August Price Net Balance Lowest Since May 2009

LONDON (MNI) – An increasing number of surveyors are seeing house
prices fall and predict further falls ahead, according to the latest
RICS house market survey.

The seasonally adjusted headline net price balance slipped to -32%
in August from -8% in July, the second consecutive monthly decline and
the lowest reading since May 2009, as a trend of increasing supply and
dwindling demand continued to undermine prices last month.

The lower new instruction balance, which this month fell to a net
12% from July’s 33%, suggests that the initial surge in supply following
the abolition of Home Information Packs has started to fade, according
to RICS.

The average number of unsold properties on surveyors’ books slipped
to 67.8 from 69. The average number of sales per surveyor over the three
month through August rose to 16.7 from 16.6, holding at an upwardly
round 17 for the third consecutive month. As a result, the sales to
stock ratio – an indicator of market slack – edged up to 24.7% from 24%
prior.

Price expectations continued to deteriorate, with the net balance
for the next three months falling from -28% to -38%, hitting its lowest
level since March 2009.

The softer trend in prices appears to be fuelling a pick up in
sales expectations with the net balance for this series rebounding from
8 to 18, its highest level since May.

Commenting on the data, RICS spokesperson, Jeremy Leaf said:

“The latest set of results suggest prices in many parts of the
country may be slipping but this does appear to be encouraging hopes
amongst surveyors that sales levels could begin to pick up as a result.”

“That said, there can be little doubt that the restrictive attitude
to the provision of mortgage finance will continue to limit transaction
activity in the market. Looking forward, our price indicators are
telling a mixed story which is consistent with the uncertainty hanging
over the economy, the low level of interest rates and the lack of new
house building.”

–London newsroom 4420 7862 7492 email: wwilkes@marketnews.com

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