First house price falls predicted since 2012

Ryan Bembridge

June 9, 2016

house price falls

RICS members have predicted quarterly house price falls for the first time since 2012.

Some 10% more members predicted prices to fall than rise with London and East Anglia expected to be worst hit, as detailed in the RICS UK Residential Market Survey for May.

A third (33%) more property professionals reported falling buyer demand than increased demand last month.

House price growth slows

But Simon Rubinsohn, RICS chief economist, reckoned this is just a blip caused by the EU Referendum rather than a new trend.

He said: “Sadly, for the many young people looking to enter the property market, it is unlikely that we are seeing the emergence of a more affordable market.

“Instead, it appears to me that what we are looking at is a short-term drop caused by the uncertainty resulting from the forthcoming EU Referendum coupled by a slow-down following the rush to get into the market ahead of the tax change on the purchase of investment properties.

“There is not at this point a sense that a fundamental shift is taking place in the market.”

In Central London 35% more RICS professionals reported prices falling rather than rising in the past month.