House prices fell for third month in a row

House prices fell for third month in a row

According to the Royal Institution of Chartered Surveyors (RICS), house prices fell for the third month in a row and at their fastest pace since July 2005. RICS claim that 22.2% more chartered surveyors experienced a fall than a rise in prices, and inquiries from potential buyers fell for an eleventh straight month. Surveyors were also more pessimistic about the price outlook than at any time since April 2003. “Past interest rate increases combined with a tightening in mortgage lending conditions have prevented many would-be buyers from getting on the housing ladder,” the RICS statement said. RICS said sustained weakness in demand was resulting in greater stocks of unsold property and looser market conditions. The ratio of completed sales to the stock of unsold property fell from 38.3% in September to 35.7%, its lowest since May 2006.