Rics: House prices set to fall

Wednesday, 22 December 2010 12:00

Property prices are likely to fall over the coming months, a forecast by the Royal Institution of Chartered Surveyors (Rics) has suggested.

The latest housing market predictions from the group have highlighted that transactions will probably remain flat but falling supply should help the market to stabilise in the first half of 2011.

Repossessions are also likely to drop, albeit marginally, by around 3,000 in number.

Simon Rubinsohn, Rics chief economist, commented that mortgage lending will remain subdued and first-time buyers are likely to continue to struggle getting a foothold on the property ladder.

But the “lack of supply in the market is likely to prevent significant house price declines in 2011”, he added.

As the gap between supply and demand narrows, the downward trend in prices seen at present will reverse at least in some part during the course of the year, Mr Rubinsohn concluded.

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