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House prices to fall 2% in 2011, RICS predicts
The Royal Institution of Chartered Surveyors (RICS) has predicted that house prices in the UK will fall two per cent by the end of 2011 compared to 2010 property prices.
Its Housing Market Forecast shows that transaction levels will remain flat, although fewer repossessions will be seen.
Mortgage holders could be reassured, however, that while property prices are likely to dip in the first half of the year as government spending cuts take hold and supply of houses falls, the market will steadily improve in the second half of the year.
"The lack of supply in the market is likely to prevent significant house price declines in 2011," commented Simon Rubinsohn, chief economist at RICS. "The narrowing gap between supply and demand will see the gentle downward trend in prices currently taking place at least partly reversed as the year wears on."
He added that transactions levels will be flat as mortgage lending remains subdued as first-time buyers struggle to "meet their aspirations of home ownership".
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Its Housing Market Forecast shows that transaction levels will remain flat, although fewer repossessions will be seen.
Mortgage holders could be reassured, however, that while property prices are likely to dip in the first half of the year as government spending cuts take hold and supply of houses falls, the market will steadily improve in the second half of the year.
"The lack of supply in the market is likely to prevent significant house price declines in 2011," commented Simon Rubinsohn, chief economist at RICS. "The narrowing gap between supply and demand will see the gentle downward trend in prices currently taking place at least partly reversed as the year wears on."
He added that transactions levels will be flat as mortgage lending remains subdued as first-time buyers struggle to "meet their aspirations of home ownership".
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Published: 04/01/2011
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