Housing market down

The housing market is down 30 per cent on last year, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).

11:20 17 May 2005

The housing market is down 30 per cent on last year, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).

The monthly British housing market survey reveals that house prices during April this year fell at a similar rate as the month before, with 40 per cent of chartered surveyors reporting a drop in house prices.

It is thought interest rate concerns have led to the decline in activity, with buyer enquiries and newly agreed sales also down during the period.

RICS national housing market spokesman Ian Perry said: "While sales have stabilised in recent months they remain significantly down on last year's.

"Concerns that interest rates may rise again after the election seem to have kept would-be buyers out of the market."

However, he added: "A growing realisation that interest rates will not continue to rise could provide the catalyst for a gradual rise in sales in the second half of 2005."

New enquiries have now shown no significant change for four consecutive months, although the number of sellers is on the increase across most of the country.

Prices were dropping in London after being stable for four months, with only Scotland reporting price rises.