44% of 265 Royal Institute of Chartered Surveyors working as Estate Agents surveyed said they had seen house priced fall during the past 3 months. Out of the 265 members surveyed 6% had seen a rise whilst 50% reported prices had been stable.
The Council of Mortgage Lenders figures reported 51,600 mortgages were approved last month, a figure that had fallen by 8% in August despite the fall it was still 3% up on the same period in 2009.
The figures from RICS only highlight the overall picture illustrated by other surveys indicating prices have drifted downward in recent months, despite the gloomy outlook, new data from the government released on Tuesday 5th October saw prices had risen by 0.7% in August from July.
High deposits required by lenders from first time buyers are contributing to a fall in numbers of first time buyers taking their first steps on to the property ladder, property prices will continue to slip back without sufficient demand. Whilst other are reporting a fall back in the figures, Vendors prepared to be realistic with pricing are still managing to achieve a sale.
Other respondents to RICS survey suggest the down turn in figures pointing to forthcoming Government cuts in public spending undermining consuming confidence and potential buyers.
Figures from the CML showed lenders advanced 18,300 loans to first time buyers, down 5% from July and a 3% drop on figures compared to August 2009. Again, despite these figures the typical deposit having to be put down has eased from 24% in July to 21% in August. 25% of Loans advanced in August accounted for remortgaging, the lowest proportion for 10 years due to the increased tight controls on credit conditions leaving little incentive for borrowers to move away form deals with low interest rates.
Although August is traditionally a slow month for mortgage lending, this year was no exception with this expecting to continue for the foreseeable future, with an uncertainty surrounding the house price trends. The house price boom 2007 should not be repeated as the problem of excess capital that led to this has been self corrected.
Government figures also published Tuesday illustrated a rise of 0.7% in UK house prices in August compared with July, the average value of a home stood at 213.116 in August compared with July according to the Department of Communities and Local Government.