14-09-2007
Houses prices shift into reverse
House prices in the UK have started to decline, it has been revealed.
According to the results of a survey by the Royal Institution of Chartered Surveyors (Rics), house price growth has entered into a period of decline, with 1.8 more chartered surveyors confirming a decline in house prices, compared with those identifying an increase.
A decrease of this nature was last seen in October 2005. "Potential house buyers have become far more cautious as they wait and see what affect interest rate rises will have on household finances," said Ian Perry, a representative for Rics. "Affordability is at its most stretched in over a decade and many will worry that rising mortgage repayments will prove a step to far," he added.
Although house prices are continuing a slow growth in London, areas where a decline has been reported include the north-west and the West Midlands.
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