House price confidence falters

The RICS predicts softening house prices following the release of their latest monthly survey of member expectations. The Survey for July shows the balance of expectations from surveyors moving to falling rather than rising house prices.

The outlook was patchy however, with surveyors being more positive about house prices in London, the North West and Scotland. The Midlands, Wales and North of England saw the biggest fall in confidence amongst members about future direction of house prices.

The RICS survey which has traditionally been a good lead indicator in house prices, shows a seasonally adjusted figure of -8% of surveyors expecting house price falls; the first time the figure had turned negative in a year.

Faltering confidence in further house price rises has been put down to rising supply and falling demand from buyers who are concerned about further public sector cuts in jobs and also face difficulties in obtaining housing finance.

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