–RICS: Net -49% Surveyors Saw UK House Prices Rise in Oct
–RICS: Oct House Price Balance Lowest Since April 2009
–RICS: Oct New buyers Enquiries Balance -12 Vs -2 Sep
–RICS: Oct Sales-to-Stocks Ratio 22.6% Vs Sep’s 24.2%
–RICS: Oct House Price Balance Falls Faster Than Median -40.0 Forecast

LONDON (MNI) – Falling UK house prices became much more
widespread in the three months through October, with the balance of
surveyors reporting price declines hitting its lowest level since April
2009.

The October Royal Institute of Chartered Surveyors’ survey shows a
precipitate fall in the headline price balance, but also found evidence
of a declining supply of new properties coming to the market, which
could cushion future house price falls.

A net 49% of surveyors reported a price fall in the three months
through October, compared with 36% in September and 32% in August. The
net 49% reporting falls was the weakest price balance reading since
April 2009, and exceeded analysts’ median forecast for a 40% outturns.

The expected prices balance for the next three months declined,
showing a net 42% of surveyors predicting declines.

The survey found evidence of softening demand in the UK housing
market. The new buyers enquiries balance fell to -12 from -2 in
September. October housing transaction levels, measured by average sales
per surveyor, fell to 15.2 in October from September’s 16.7.

The October sales-to-stocks ratio, measuring properties sold
relative to those on surveyors’ books, fell to 22.6% from September’s
24.2%.

While buyer demand appears to be weakening, so does housing supply.

RICS found the new instructions balance fell to -4% in October from
22% in September.

RICS said the fall in new stock coming onto the market “could, if
sustained, lessen the downward pressure on prices in the coming months.”

“Dramatic falls are likely to be limited by a gradual drying up of
stock coming to the market,” Jeremy Leaf, RICS spokesperson, said.

–London newsroom 4420 7862 7491 email: drobinson@marketnews.com

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