Report suggests fewer people are looking to buy

Published: November 13, 2007

Another report has indicated that house prices in the UK dropped last month.

According to the Royal Institution of Chartered Surveyors (Rics), 22.2 per cent more of its members reported a fall than a rise in house prices during October - compared to 14.9 per cent in September.

This is the fastest decline in sentiment since July 2005, when 30.9 per cent of chartered surveyors reported a fall than a rise.

Rics explained that the recent credit crunch meant that people had recently found it hard to find the best mortgage deals and that this has impacted on demand.

"The housing market is seeing the awaited slowdown that many had been expecting, with modest falls reported across most UK regions," explained spokesman Ian Perry.

"A decline in transactions may be in the offing as stalemate returns to the market, although a material fall in prices would require a weaker labour market prompting forced sales."

A report from the department of communities and local government (DCLG) recently suggested that house prices increased by 0.3 per cent in September - down from 0.5 per cent during the previous month.