11:20 AM, 28th October 2010, About 13 years ago
The latest house price surveys confirm what everyone already knows – house prices are stuck in a rut and mortgage finance is drying up.
The latest house price figures released by the Communities and Local Government Department show prices were still 8.3% up for August 2010 compared with August the year before.
The CLG calculates the average house price as £213,116 for the month with prices increasing 0.8% on the three months ending August 31, compared with 1.7% for the quarter ending May 31.
Other house price watch indicators are more or less in line with the CLG percentage changes for the month.
The average house price lines up with the Academetrics index – but is higher than most of the rest because the figures cover a larger geographical area and are seasonally adjusted.
Meanwhile, the Royal Institute of Chartered Surveyors is hinting at lower prices as estate agents report more property up for sale in September as sellers test the market.
The RICS housing market survey for September saw the North leading the way with new instructions, followed by London, the South West, Yorkshire and Humberside.
RICS spokesperson, Ian Perry said: “The fresh influx of property to the market combined with a lack of buyers remains the key problem affecting the sector. First time buyers are in particularly short supply as the high deposits required by lenders prevent them from taking their first steps on the property ladder.
“Without sufficient demand property prices continue to slip back. However, many areas are reporting a correction rather than dramatic falls in prices and vendors who are prepared to be realistic with pricing are still able to achieve a sale. It’s very much a buyers market at the moment.”
The survey also confirmed half of estate agents quizzed reported stable property prices, although new buyer inquiries have recovered from August – probably the result of the summer holidays.
Overall, estate agents expect the number of sales to increase rather than fall.