According to RICS, a sudden rise in supply due to HIPS caused property prices to fall but stock is now declining
"A further increase in the supply of property coming onto the market drove down property prices
again for the second consecutive month in all regions except in Scotland,” says the latest survey from RICS UK housing market in September. However, the international association of real estate professionals say, "This trend has led to an improved outlook in the number of sales.” More and more English estate agents show prices declining, due to increased supply and a decline in demand from buyers. "The number of new mandates is an indicator of supply over the market is increasing by 12% Chartered Surveyors (RICS members professionals, ed.) This figure was 33% the previous month. This shows that the initial wave of properties that entered the market after the removal of HIPS has now begun to subside, "said RICS.
However, estate agents noted that the demand from property buyers has fallen again significantly, reaching the level of January 2010. For professionals surveyed, falling property prices should continue during the coming months. This should ultimately convince buyers to return to the property market. "The data suggests that in many parts of the country, prices will be back again and agents are hopeful that the level of sales could take off. That said, there may be a slight limitation because the restrictive attitude of mortgage lenders will continue to limit transaction activity in the market. Our price indicators show a contrasting scenario is related to uncertainties about the economy, the low interest rates and lack of new construction, "said Jeremy Leaf of RICS