12/10/2010 - House prices fell in September
House prices fell for the third consecutive month as properties continued to flood on to the market in September, research has revealed.
The Royal Institution of Chartered Surveyors has revealed that the number of surveyors reporting a rise in new instructions almost doubled to 22% during the month.
The increase in property emerging on to the market has been attributed to people either testing the water ahead of the Government's spending review, or trying to sell before the economic climate worsens.
But with mortgage financing proving difficult, many potential buyers continued to bide their time and see how the market moves forward.
Reticent buyers could be good news for the buy-to-let market, as these potential homeowners could decide to rent while making their decision.
This could spark a number of opportunists looking to rent a property for the first time, but they will have to make sure they prepare properly with provisions such as landlord insurance.
Around 2% more surveyors said they had seen a fall in new buyer enquiries than those who saw a rise, although this was down from a balance of 17% of surveyors who reported a fall in buyers in August.
Unsurprisingly, given the rise in properties being put up for sale and the ongoing shortage of buyers, house prices continued to fall, with 36% more surveyors reporting a drop than those who saw a rise, up from 32% more the previous month.
Copyright © Press Association 2010
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