London House Prices Continue To Fall According To RICS
New data just released by the Royal Institute Of Chartered Surveyors (RICS) suggests that the reversal in house prices in London is continuing as buyers shun high prices and look to buy further out. Surveyors in London said that property prices had fallen for the three months to February and look as though they could fall further as sellers struggled to sell their homes.
House prices are rising in other parts of the south-east and the south-west of the UK mainly due to the lack of available homes coming onto the market. Some sellers could be delaying the sale of their homes until the general election has been decided.
The surveyors that took part in the survey said that they thought price falls in London are a short term problem and that house prices will recover over the medium term. They went on to say that prices were likely to rise by a further 30% over the next 5 years. Recent changes to lending criteria that has been introduced by the Bank Of England has made it much harder to borrow money and this has not helped.
London has also been a victim of it's own success with press reports continually reporting on the meteoric house price increases and talk of a property bubble. It is not surprising that some buyers have decided to wait a while to see what happens. The news is better if you live in other parts of the UK as prices appear to be on the increase. Scotland and Northern Ireland is set to outperform the rest of the UK. Nationwide has just release a report to suggest prices in these regions were likely to rise further this year.
Perhaps it is not surprising that the rentals market has seen an increase in demand as buyers wait to see of house prices fall. Rents across the UK are predicted to rise by 2.5% over the next 12 months as the supply of rental properties coming to market continue to decline. If this is the case the news may be welcomed by many because rents have gone seen much bigger annual increases over the last few years.