Property Market Falters
Property prices and mortgage demand may be abating, but the strong economy and historically low borrowing costs will save the market from a crash, insists RICS


RICS has reported its first house price falls for August in its latest housing market survey. According to their figures, during the three months to August, for the first time more surveyors ? 12% ? in the UK reported a fall in prices than an increase. Declining prices, according to the Royal Institute of Chartered Surveyors (RICS), were strongest in London, South East and the Eastern region, followed by the South West. Growth continued in Scotland and the North of England, but a rapid slowdown was apparent in the North West and Yorkshire and Humberside. Numbers of sales completed are also falling quickly, having declined further in August to the lowest level since November 2000. RICS insisted that a crash is unlikely thanks to the strength of the economy and, in spite of recent increases, relatively low interest rates. While stocks of properties on surveyors? books have increased since May, they are still historically low, some 12% below levels for the same period last year, showing that the market is still largely in favour of the vendor. Meanwhile the British Bankers? Association (BBA) reported a decline in demand for mortgages yesterday, saying that mortgage lending rose by £4.4bn in August, the weakest figure since June 2002, and notably lower than both July?s figure of £5.1bn and the recent monthly average of £5.4bn. David Dooks, BBA Director of Statistics, said: ?Notably weaker mortgage growth in August may be a sign that mortgage demand is moderating in the face of tighter household budgets and a slowing housing market.?
Sign up for the Country Life Newsletter
Exquisite houses, the beauty of Nature, and how to get the most from your life, straight to your inbox.
Country Life is unlike any other magazine: the only glossy weekly on the newsstand and the only magazine that has been guest-edited by HRH The King not once, but twice. It is a celebration of modern rural life and all its diverse joys and pleasures — that was first published in Queen Victoria's Diamond Jubilee year. Our eclectic mixture of witty and informative content — from the most up-to-date property news and commentary and a coveted glimpse inside some of the UK's best houses and gardens, to gardening, the arts and interior design, written by experts in their field — still cannot be found in print or online, anywhere else.
-
Chelsea Flower Show 2025: What else to do in SW3 if you're coming to the world's greatest flower show
There's more to Chelsea than just the Flower Show so we've rounded up some of the best places to eat, stay and shop.
-
Uniquely unique? The Yorkshire grain silos transformed into a home that's a symphony in glass, steel and curves
Amid the beautiful countryside of North Yorkshire, on the edge of the Castle Howard Estate, The Silos is a property for which the word 'house' simply doesn't cut it. And that's not the only way in which it's made us throw out the dictionary.