Property prices could soon level off

Posted: 14 May 2009 11:30:00 GMT

Following recent comments from Lloyds' commercial mortgage manager Steve Noakes on property prices, the Royal Institution of Chartered Surveyors (Rics) has offered some predictions for the future value of homes.

Mr Noakes told the Sunday Times last week that house prices are likely to drop six per cent before levelling off, while Rics chief economist Simon Rubinsohn suggests it is difficult to put a specific figure on the scale of the drop.

It is a "hard call" to predict when house prices will stabilise, he said, before revealing that he has not ruled out any potential hike in the cost of property.

"It all depends to a large extent on whether or not this lack of supply - which is very visible in our new instructions balance, [and] which every month in the last two years, virtually, has fallen – continues," Mr Rubinsohn explained.


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