House prices are falling the fastest since 2009, while rents are rising due to the ‘yawning gap’ between supply and demand, research shows
House prices are falling the fastest since 2009, while rents are rising due to the ‘yawning gap’ between supply and demand, research shows
- The average UK home is now worth £279,569, down £14,000 in one year
House prices fell at the fastest pace since 2009 last month as the ‘downward spiral’ continues, a new survey of estate agents and surveyors showed.
The Royal Institution of Chartered Surveyors (RICS) poll of its members in August showed the most negative outcome since February 2009, as buyer demand and agreed sales fell sharply.
In the rental sector, on the other hand, rents are being driven up by a ‘yawning gap’ between supply and demand, according to RICS.
A net balance of -68 percent of respondents reported that house prices had fallen in their region – down from -55 percent in July.
The net balance measures the difference between the percentage of surveyors who observe increases and decreases in house prices.
Property prices will continue to fall in the short term due to higher mortgage rates, with ‘little prospect of any reversal in the near future’, according to the Royal Institution of Chartered Surveyors (RICS).
House prices fell last month at the fastest pace since 2009 as the ‘downward spiral’ continues (Stock Image)
House prices are falling in almost all parts of Britain, with the West Midlands, East Midlands, East Anglia and the South East seeing the biggest falls, RICS said.
Northern Ireland remains the only area where polls show prices are rising more than falling.
According to Halifax figures released last week, the average house in Britain is now worth £279,569, after £14,000 was wiped off its value in one year.
Property prices will continue to fall in the short term due to higher mortgage rates, with ‘little prospect of any reversal in the near future’, RICS said.
Homebuyer demand remained subdued, with the net balance of -47 per cent of surveyors reporting a decline in inquiries over the month – the weakest reading since the start of the pandemic.
Demand from new buyers continued to decline in all parts of Britain.
The average house in Britain is now worth £279,569 after £14,000 was wiped off its value in one year, according to Halifax figures released last week (Stock Image)
Meanwhile, demand for rental properties is rising across the country as renters compete for fewer units and landlords sell and leave the sector.
A net balance of 60 per cent of surveyors expect rents to rise over the next three months, RICS said.
RICS chief economist Simon Rubinsohn said: ‘The latest round of feedback from RICS members continues to point to a sluggish housing market with little sign of any improvement ahead.’
Alec Harragin, director at Savills’ London head office, added: ‘While inflation appears to be on track, and mortgage rates have peaked, affordability will remain under pressure.’