House prices are falling at their fastest pace since 2009 while rent prices are being pushed up by a ‘yawning gap’ between supply and demand, survey finds

House prices fell at their fastest rate since 2009 last month as the “downward spiral” continues, according to a new survey of estate agents and surveyors.

The Royal Institution of Chartered Surveyors (RICS)’s August survey of its members showed the most negative result since February 2009, with buyer demand and agreed sales falling sharply.

In contrast, in the rental sector, rents are being pushed up by a “yawning gap” between demand and supply, RICS said.

A net -68 percent of respondents said house prices had fallen in their area – up from -55 percent in July.

The net balance measures the difference between the percentage of surveyors finding increases and decreases in house prices.

House prices fell at their fastest rate since 2009 last month as the ‘downward spiral’ continues (Stock image)

House prices are falling in almost all parts of the UK, with the West Midlands, East Midlands, East Anglia and the South East seeing the biggest falls, RICS said.

Northern Ireland remains the only region where more surveyors are reporting rising prices rather than falling, the poll found.

The average value of a British house in the UK is now worth £279,569 after seeing its value wiped by £14,000 in a year, according to Halifax figures released last week.

House prices will continue to fall in the short term in the face of rising mortgage rates, with “little prospect of recovery in the immediate future”, RICS said.

Homebuyer demand remained subdued, with a net -47 percent of surveyors reporting a decline in inquiries during the month – the lowest figure since the start of the pandemic.

All regions of the UK continued to see a decline in demand from new buyers.

The average UK house is now worth £279,569 after seeing its value wiped by £14,000 in a year, according to Halifax figures released last week (Stock image)

Meanwhile, demand for rental properties is soaring across the country as tenants compete for fewer properties and landlords sell up and leave the sector.

A net 60 per cent of surveyors expect rental prices to rise over the next three months, RICS said.

RICS chief economist Simon Rubinsohn said: “The latest round of comments from RICS members continues to point to a sluggish property market with few signs of any relief in sight. »

Alec Harragin, director of Savills’ London head office, added: “Even though inflation appears to be falling and mortgage rates may have peaked, affordability will remain limited. »