House price growth grinds to halt

HOUSE prices ground to a halt in October after more than two years of growth, according to surveyors.

Rising mortgage costs are fuelling caution among buyers, the Royal Institution of Chartered Surveyors (Rics) said.

But rents are expected to continue heading upwards, amid an imbalance between tenant demand and the supply of homes to let.

Across the UK as a whole, a net balance of 2% of property professionals reported house prices falling rather than rising, ending a 28-month positive sequence.

The pattern is uneven across the UK: property professionals in Scotland and Northern Ireland continue to report a reasonably firm upward trend in prices even if the pace of growth has softened, Rics said, but those in areas such as East Anglia and the South East of England were seeing prices heading downwards.

Professionals across all parts of the UK are now, on balance, of the opinion that house prices will fall over the year ahead.

New buyer inquiries fell for the sixth month in a row in October and survey feedback on buyer demand was negative across the UK, Rics said. It now takes 18 weeks on average to sell a property, up from 16 weeks a year ago.

Simon Rubinsohn, Rics’ chief economist, said: “The volume of activity is likely to slip back over the coming months and realistic pricing is now much more important to complete a sale.”