Rics reports slowing market

Posted: 14 Jun 2007 17:17:25 GMT

The Royal Institution of Chartered Surveyors (Rics) has reported that house prices increased in May, but by their slowest rate in a year.

The Royal Institution of Chartered Surveyors (Rics) has reported that house prices increased in May, but by their slowest rate in a year.

According to Rics, only 23.9 per cent more chartered surveyors reported house price increases than falls - the smallest difference in 12 months, and down from the 28.5 per cent gap reported for April.

However, new buyer enquiries were reported as "stable", with rising interest rates apparently failing to quell demand in markets where there is a noticeable shortage of housing supply.

"The stabilisation in buyer enquiries sends a clear signal that home buyers are undeterred by recent interest rate rises," commented Rics spokesman Jeremy Leaf.

"With interest rates expected to rise even higher and some home owners fearing the end of fixed rate deals, affordability conditions are set to worsen across the board and will herald a cooling market."

Interest rates are widely expected to rise to 5.75 per cent next month.

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