Rics records worst house price fall since 1992

The Royal Institution of Chartered Surveyors (Rics) has recorded the most unfavourable house price figures among its membership since 1992.

In December 2007 49.1 per cent more surveyors reported a fall in house prices than a rise, up from 40.6 per cent in November and the worst figure since the 60.1 per cent statistic in November 1992.

Commenting on the findings, Rics spokesman Ian Perry said the situation was not as bad as it appeared, stating: "The underlying economic conditions are vastly different to what the country experienced in the early 1990s."

He added that supply would have to "loosen considerably" to cause prices to plummet.

However, Mr Perry warned, the Bank of England needed to cut interest rates to keep the market "stable" this year.

A similar view was expressed by David Sherwood of Essex-based chartered surveyor company Fenn Wright.

He told the Daily Telegraph that Britain faced "a bleak time for the next two to five years" if rates were not cut soon.

The possibility of falling house values may prompt some to consider the self build option rather than take a mortgage at this time.


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