Fall in Buyer Demand Pushes House Prices Lower

The demand from house buyers has fallen for only the second time since October 2008 and the number of sellers has risen to its highest level for three years according to the latest RICS UK Housing Market survey.

House sold, handing over keysHouse prices look set to fall back, or remain flat, the surveyors are saying in their latest house price survey. The balance between sellers and buyers has shifted in favour of buyers as sellers have rushed to market their house after HIPs were abolished.

The jump in the number of sellers is the highest seen since May 2007, however uncertainty about the economy and the impact of the Government austerity measures announced in the emergency budget is encouraging buyers to sit on the sidelines, which will ease any upwards pressure on house prices.

The long term outlook for house prices remains gloomy too, according to Accountancy firm PricewaterhouseCoopers. They are also predicting that prices to remain flat for the rest of 2010, but add that it will take many years for house prices to recover to their 2007 peak.

The strong possibility of mortgage interest rate rises during the next few years could portend a fall in house prices over the next few years, and the property market will remain vulnerable to setbacks for many years.

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