The UK housing market is experiencing negative growth for the second successive month, according to the Royal Institute of Chartered Surveyors (RICS).
RICS monthly housing market survey, which asks surveyors to report whether they saw prices rise or fall, found 14.6% more surveyors noticed a fall than a rise. This compares with just 3.3% more reporting a fall in prices during August and is the fastest rate of decline for two years.
However, RICS says demand has fallen but supply still remains very constrained and market conditions have tightened as a result.
New buyer enquiries fell for the tenth consecutive month and are deteriorating at the fastest pace since March 2003. RICS says this is largely down to several interest rate rises and tightening lending criteria, which are adversely affecting affordability.
The number of house sales is also declining and 21% more surveyors reported a fall in new instructions to sell property. This is the four consecutive monthly fall in new instructions.
Only London saw a rise in new instructions, which RICS says is largely due to the heavy financial services presence in the city.
Price growth was strongest in Scotland, while East Anglia, Wales and the Midlands saw a significant fall in prices. The South, North West and Yorkshire and Humberside regions saw moderate price drops.
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