The Royal Institution of Chartered Surveyors (RICS) Survey today revealed that 22.2% more surveyors are reporting house price drops, compared with 14.9% in September. This was worse than market expectations of a minus 20% reading accompanied by a surge in stock on estate agent books of 8.8%.

RICS spokesman Ian Perry stated: "The housing market is seeing the awaited slowdown that many had been expecting, with modest falls reported across most U.K. regions,

" A decline in transactions may be in the offing as stalemate returns to the market."

"Past interest rate increases combined with a tightening in mortgage lending conditions have prevented many would-be buyers from getting on the housing ladder."

"Those on the property ladder remain under little pressure to sell while the economy remains fundamentally sound. The supply side of the market remains tight and continues to provide some support,"

This survey follows hard on the heals of Halifax's monthly house price index report which showed back to back house price drops for October and September of 0.5%.

The news supports the Market Oracle analysis that the housing market is heading for a bear market lasting at least 2 years with a target drop of 15%

UK Housing Market Forecast for 2008-09 - As of 22nd August 2007

UK House Prices to fall by 15% over two years, falling prices to be accompanied by cuts in UK interest rates. (22nd Aug 07),

1st May 07 - UK Housing Market Heading for a Property Crash

25th Sep 07 - UK Housing Market on Brink of Price Crash - Media Lessons from 1989!

28th Oct 07 - UK House Prices - Primary Reasons For a Sharp Fall

By Sarah Jones
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