Estate agents report falling house prices, but it varies by region

House prices are falling, according to the latest survey by the Royal Institution of Chartered Surveyors painting yet another mixed picture of the state of the property market. The closely-watched monthly survey gives a snapshot of what is happening on the ground across the country.

This month’s survey revealed more Rics members, comprising of estate agents and surveyors, reported house prices falling in their areas than those that reported prices rising. Prices over the past three months are reportedly falling at the sharpest rate across East Anglia.

John Frost, a Rics member in East Anglia, said: ‘Buyers are making offers with limited commitment. Vendors still want to achieve high prices but cannot support their levels currently. The confidence of buyers is low due to the higher price rises in shops and high interest rate levels.’ Zaman Sheikh, a Rics surveyor in Chelmsford added: ‘The sales market in July has been quiet, this could be due to seasonal demand but we feel personally due to a high number of landlords exiting the sector has caused a large oversupply of property on the market, in particular flats. Flats are becoming more difficult to sell.’

There have also been falls reported in London, the South East, the South West and in Yorkshire and Humber. Jeremy Leaf, a north London estate agent and a former Rics chairman, said: ‘Only some vendors are recognising the need for realistic pricing in order to attract attention in view of stock overload, with much of it overpriced, particularly smaller one- and two-bed flats and larger houses.’ Meanwhile another Rics member based in London, James Perris, added: ‘The market remains difficult due to the high transactional taxes and now the reduced buyers choosing to move overseas to more favourable tax environments.’

Going against this broader trend, Rics members say prices continue to rise in Northern Ireland and Scotland, while those based in the North West are also seeing prices moving higher. Thomas Baird, a Rics member in Scotland said there had been an ‘injection of confidence’ into Scottish market with interest rate drop helping to push prices higher.

Looking ahead, more Rics members see house prices falling over the coming three months than those who think prices will rise. However, over a 12 month timeframe, the majority see prices going higher. More Rics members also reported a drop in buyer enquiries than those who saw an uptick.

That said, this varies across different parts of the country, with fewer buyer enquiries reported in East Anglia, the South East and the South West of England. In London, the North West, Scotland and Northern Ireland, there has been an uptick in buyer enquiries.

Meanwhile, there was also an apparent drop off in sales agreed across the country, according to Rics members. Simon Rubinsohn, chief economist at Rics said: ‘The somewhat flatter tone to the feedback highlights ongoing challenges facing the housing market.’

‘Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions. Meanwhile, uncertainty about the potential contents of the Chancellor’s autumn budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.’