Property prices more affordable

Grovelawn Financial News 16/01/2008

← Halifax figures reveal market growth | News For January 2008 | Make the most of tax free gifts →

Prices fall as homes for sale increase

Figures released from The Royal Institution of Chartered Surveyors (Rics), show that the value of properties have fallen again, 49.1% of chartered surveyors reported falls compared to rises which is the lowest since November 1992.

The demand for properties remains subdued as 25% more surveyors reprted a fall in the number of house hunters compared with those who reported an increase. One of the main reasons why the number of buyers decreased was felt to be due to mortgage lenders tightening their borrowing criteria. Rics spokesman Ian Perry said "The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007". He added that the following months would be of "great importance" to the market as potential buyers would be looking to the Bank of England to reduce interest rates further.

Overall, 4% more surveyors said they had seen a rise in the number of homes being put on the market compared with those who had seen a fall, up from a balance of minus seven in November. It said that the combination of weakening demand among potential buyers and greater supply was driving the price fall.

← Halifax figures reveal market growth | News For January 2008 | Make the most of tax free gifts →

The information contained within these news articles may include reference to taxation, legislation, regulation and other issues or concerns that may no longer apply.

Your property may be repossessed if you do not keep up repayments on your mortgage.

For more information on how we are paid for mortgages please click here.

Grovelawn Financial Services, 1C Restormel Industrial Estate, Liddicoat Road, Lostwithial PL22 0HD — T: 01208 872689