The balance of chartered surveyors that reported house price falls increased to near historical levels in February and stock piles rose to levels not seen for a decade, according to the Royal Institute of Chartered Surveyors’ (RICS) February UK housing market survey.

The RICS’ house price balance dropped for the seventh month in succession signalling more than half a year of negative market sentiment. Around 64.1% more chartered surveyors reported a fall rather than a rise in house prices, an increase from 54.7% in January. This figure is close to the historical low of June 1990 when 64.5% more chartered surveyors reported a fall in house prices.

However, Scotland tells a different story. The net balance of surveyors reporting price rises surged from 7% to 25% – a significant jump in the current economic climate, indicating that Scotland still remains the most buoyant market in the UK. Although monthly data can be volatile, this relatively healthy trend is broadly consistent with economic data coming out of the country.
Ian Perry, RICS’ spokesman, said: “Confidence in the market is clearly having an effect in prices. A combination of a lack of available finance and weakening demand is causing a slow drop in capital values. While there is very little new supply coming onto the market, it is unlikely that there will be significant price drops in the short term but the build-up of unsold stocks will encourage buyers to negotiate lower asking prices.”