Struggling property prices will add even more gloom to the UK economy with house prices dropping again in July 2011 as many buyers struggled to secure mortgage finance.
Even worse was the news that UK homeowners were reluctant to put their properties on the market because of the slump in valuations.
The latest UK Housing Market Survey data published by the Royal Institute of Chartered Surveyors (RICS), revealed that 22% more chartered surveyors reported a fall in house prices.
The average number of sales over the last three months has fallen to 14.2, the lowest for more than two years.
A RICS spokesman said: “The UK housing market continued to stall during July; prices edged lower and sales levels remained subdued. While the holiday season appears to have had some impact on the market, the continual problem of inaccessible mortgage finance is still preventing first-time buyers accessing the market. With prices continuing to slip, it appears that many potential vendors are unwilling to accept reduced selling prices, so are reluctant to enter the market.”
Pessimism still prevails in the UK property market, with house prices predicted to continue to sink. However, there are signs of a possible recovery as demand edged up.
Interest from potential buyers has been fairly muted since the beginning of the year, but July saw a 5% rise in new enquiries.
London remains the only UK region to see any house prices rises, with property prices in areas of the West Midlands and the East of England coming off much worse than in recent years.
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