RICS Housing Market Survey

Twenty things you need to know about the Royal Institution of Chartered Surveyors’ UK Housing Market Survey

1 A report into the UK housing market by the Royal Institution of Chartered Surveyors (RICS) has revealed that house price growth remained negative for the second month in succession.

2 14.6 percent more chartered surveyors reported a fall than a rise in house prices, down from 3.3 reporting in August, the survey indicated.

3 This represented the fastest decline since September 2005, when 19.4 percent of chartered surveyors reported a fall than a rise.

4 Surveyor confidence in both sales and prices deteriorated further, reaching their lowest levels respectively since March 2003 and May 2005.

5 New buyer enquiries declined for the tenth consecutive month, RICS suggested.

6 This represented the fastest pace since March 2003.

7 51 per cent more chartered surveyors reported a fall than a rise down from 39 percent in August.

8 RICS cited that the five interest rate increases since August 2006, and tightening mortgage lending criteria was weighing further on buyer affordability.

9 New instructions declined for the fourth consecutive month at the fastest pace since June, the RICS study showed.

10 21 per cent more chartered surveyors also reported a fall than a rise in new instructions to sell property.


11 The ratio of completed sales over the last three months compared to the stock of unsold property on the market increased to 38.4 per cent in September from 37.7 per cent in August, the RICS study indicated.

12 Scotland saw the strongest price growth, RICS reported in its analysis of the market.

13 According to the report, the largest house price falls were reported in East Anglia, Wales and in the Midlands.

14 Smaller falls were reported in the South East, South West, Yorkshire and Humberside and the North West.

15 Commenting on the findings, Jeremy Leaf, spokesperson at RICS, said: “Although house prices continue to fall, the underlying economy remains strong. A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant.”

16 Leaf added: “The combination of rising interest rates, the introduction of Home Information Packs and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers. As a result, some would-be buyers are turning to the rental market whereas others, conscious that the next move in interest rates is now likely to be down rather than up and market meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive market.”

17 RICS’ housing market survey is the longest running monthly survey of house prices in the UK, collecting data since January 1978.

18 The survey is cited by the Bank of England’s Monetary Policy Committee at its monthly interest rate setting meetings.

19 RICS covers all aspects of property, construction and associated environmental issues. It has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 121 countries.

20 RICS is governed by a Royal Charter approved by parliament, which requires it to act in the public interest. It is also a professional regulatory body approved by government (HM Treasury).