House prices: Property CRASH draws closer as UK growth comes to a standstill, experts say | Property | Life & Style

House prices are coming to a standstill according to experts.

Surveyors claim that property prices, especially those in London and the South East are seeing no or very little growth.

A meagre one per cent of surveyors reported prices increasing rather than decreasing in July.

This is down a whopping seven per cent compared to only one month beforehand.

What’s more, prices are cheaper in South East than they were, the worst reading for the area for over half a decade. 

July’s reading was the weakest since March 2013 according to the Royal Institution of Chartered Surveyors.

It is the most expensive homes that are feeling the pinch on prices.

Homes are also selling for less than the original asking price, the research found.

Over half (57 per cent) of homes worth between £500,000 and £1 million went for less than the asking price.

When it came to homes worth less than £500,000, 37 per cent sold for less than the asking price.  

Simon Rubinsohn, chief economist at Rics, said recent tax changes and a lack of new homes after the financial crisis were causing the current stall in prices.

He said: “Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come.

“The flatter trend in price growth is arguably a silver lining but there is no real indication that the housing market will become materially more affordable any time soon.”

Mortgage Advice Bureau has weighed in with its comments about Rics findings.

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), said: “It would appear that, much like the current British Summer, as far as surveyors are concerned the temperature of the UK housing market is variable across different parts of the country, with some areas, such as the West Midlands and South West, seeing house prices continue to increase at significant levels, yet others, such as London and the South East, seeing prices cool. 

“It is however possible that the downward trend suggested by surveyors in the capital and surrounding commuter belt is perhaps a localised reaction to the current political and economic climate.”

It as recently revealed that a property market crash could see prices of property for sale could plummet to £70,000, experts warned last month.

A property expert has given the latest news and updates on whether a crash is possible.

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