MercoPress. South Atlantic News Agency

UK surveyors: house prices fall at fastest rate in two years

The property market reached a turning point over the summer

House prices are falling at their fastest rate for two years as buyers stay away from the market, new figures have shown.

The Royal Institution of Chartered Surveyors (RICS) said the cost of property in the UK fell for the second month in a row during September. The number of people looking to buy a house also dropped for the 10th consecutive month and at its fastest rate for four and a half years. Overall 14.6% more surveyors reported a drop in house prices than those who said there had been a rise, a further fall from the 3.3% more who said prices moved down during August. RICS said the fall seen during September was the fastest decline since September 2005, when 19.4% more surveyors reported seeing a drop in the cost of property than those who saw a rise. The group said five interest rate rises combined with mortgage groups tightening their lending criteria in the face of the global credit crunch was weighing further on already stretched buyers. This contributed to 51% more surveyors reporting a fall in people looking to buy a home, down further from the 39% who had seen a reduction in August. Surveyors remained pessimistic about the outlook for both prices and buyers going forward, with expectations for house price growth reaching its lowest level since May 2005. At the same time the group also reported a fall in the number of properties coming on to the market, with new instructions falling for the fourth month in a row. London was the only region to buck this trend. RICS spokesman Jeremy Leaf said: "Although house prices continue to fall, the underlying economy remains strong. A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant."