British house prices showed the most widespread falls in 14 years in August as demand weakened against the backdrop of elevated mortgage costs and economic uncertainty, an industry survey showed.
RICS House Price Balance Falls to Weakest Level Since 2009
The Royal Institution of Chartered Surveyors (RICS) house price balance, which measures the difference between the percentage of surveyors seeing rises and falls in house prices, slumped to -68 in August from -55 in July.
Thursday’s house price balance marked the weakest reading since February 2009 and was below the -56 forecast in a Reuters poll of economists.
Other Signs of Slowdown in Property Sector
Simon Rubinsohn, chief economist at RICS, said the survey pointed to a sluggish housing market with little sign of relief in prospect.
“Prices are continuing to slip albeit that the relatively modest fall to date needs to be seen in the context of the substantial rise recorded during the pandemic period,” Rubinsohn said.
The survey results echoed other signs of a slowdown in the property sector.
Mortgage lenders Halifax and Nationwide have both shown prices falling in monthly terms as the Bank of England’s sustained run of interest rate rises, persistent inflation and a prolonged cost-of-living crisis squeeze home-buyers.
UK Economy Shrinks by 0.5% in July
Official figures, released on Wednesday, showed the country’s economy shrank by a sharper-than-expected 0.5% in July after public sector strikes and unusually rainy weather weighed on output.
