Rics: Property confidence dips
Published On 11 October 2007
Demand for houses slowed during September, according to figures from the Royal Institution of Chartered Surveyors (Rics), with supply continuing to be constrained.According to the survey, house price growth remained in the negative as 14.6 per cent more chartered surveyors recorded a fall in prices, rather than an increase.
In addition, 51 per cent more surveyors said there had been a fall, rather than a rise, in new buyer enquiries - the tenth month in succession a drop has been reported.
But the report also revealed that 21 per cent more respondents reported a drop than a rise in property sale instructions, as homeowners are less inclined to sell.
"Although house prices continue to fall, the underlying economy remains strong," said Jeremy Leaf, spokesman for Rics. "A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant."
He added that interest rate increases, Hips and uncertainty in financial markets had "certainly affected the confidence of buyers and sellers".
Figures from the Council of Mortgage Lenders indicated recently that property affordability for first-time buyers has continued to decline. While the typical mortgage to income ratio has remained at 3.38 since July, the proportion of income spent on interest increased to 20 per cent from 19.7 per cent.
