Rics: UK house prices drop

Posted: 16 Jan 2008 10:42:31 GMT

Property prices in the UK have fallen significantly, according to a new study, prompting comparisons with the market slump in the 90s.

Property prices in the UK have fallen significantly, according to a new study, prompting comparisons with the market slump in the 90s.

A report from the Royal Institution of Chartered Surveyors has revealed that 49.1 per cent of its members are reporting a decline in house prices.

That is the highest proportion since November 1992, when the balance recorded was 60.1 per cent.

"The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007," said spokesperson for Rics Ian Perry.

Despite the fact that "sentiment seems to have reached its lowest ebb", Mr Perry explained that economic conditions in the UK are considerably different now compared to the early 90s, which could stave off a similar crash.

"However, the coming months will be of great importance to the market and many would-be buyers will be watching the Bank of England's interest rate decisions while lenders remain reluctant to part with finance," he added.

The report also showed that the number of unsold properties on the market had increased 7.1 per cent in December, and 9.1 per cent in November.

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