RICS forecasts house price drop amid decline in buyers

Written by Oliver Wade

With the number of house buyers on the decline, piling further pressure on London’s already strained property market, the Royal Institution of Chartered Surveyors (RICS) said there was “caution” as Bank of England (BoE) governor Mark Carney warned of a potential 35% drop in prices in the event of a no-deal Brexit.

Approximately 47% more surveyors in London claimed they expected a fall rather than a rise in house prices in the next three months.

Commenting, Mortgage Advice Bureau head of lending Brian Murphy said: “Whilst Carney’s remarks were perhaps somewhat taken out of context… RICS members appear to be suggesting the impact in some areas of the country was noticeable.”

Bluestone Mortgages director of sales and marketing Steve Seal added: “Today’s results highlight the UK’s consistent regional differences and overall slowdown in the market. However, this shouldn’t take our eyes away from the active areas of the market, particularly the Northern powerhouses where a record number of first-time buyers are stepping onto the property ladder.

“More, however, can be done to ensure that a wide range of borrowers have access to lending. Not all borrowers receive the same treatment when it comes to securing finance, and a slight blip in an individual's credit history shouldn’t exclude them outright from homeownership. Here, is where specialist lenders come in – understanding that every borrower’s application needs to be assessed on a case by case basis and that they aren’t just a number on a computer screen.”

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