The Royal Institution of Chartered Surveyors have announced that house prices in the UK have started to fall for the first time since July 2009.

The Royal Institution of Chartered Surveyors said that there was an increase in homes being put up for sale, with interest form new buyers dwindling.  Despite the drop in house prices making homes in the UK more affordable, many buyers are struggling to get accepted for mortgages due to stricter lending criteria that has been brought in by banks

Recent surveys from both the Nationwide and the Halifax have shown that house prices have been cooling off recently.  New property coming onto the market in the UK has increased at its fastest pace since May 2007, which has left many surveyors braced for further decreases.

The government’s house price index has also confirmed that house prices in the UK have started to drop recently.

Some surveyors and valuers have gone on record as saying that they had been astounded by the ferocity of the downturn in house prices uk fallingthe market since the government’s emergency budget in June.

One firm said: “The market is the worst it has ever been. The government’s determination to balance the books has undermined confidence,”

On top of this, some surveyors have warned that their might be more repossessions in the months to come as many struggle to pay for their current mortgages.

In the 12 months, figures show that nearly all parts of the United Kingdom have seen house prices increase.  The only area that did not increase is Northern Ireland.  House prices in Northern Ireland have fallen by 8% on average over the last year.

The rise in house prices over the last year has been largely due to a shortage of homes being put on the market, but with more homes now going up, the market does not have that issue.

The talk surrounding public spending cuts is also unsettling consumers and they are concentrating on essentials rather than purchasing new homes.  The government aims to cut spending which will put thousands of public sector jobs at risk.  With these expected job cuts, buying a house is the last thing on many peoples mind.

It is expected that the decrease in UK House prices will continue over the next 6 – 9 months at least.

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