House prices are going down

House prices are likely to fall during the second half of 2010, according to a survey by the Royal Institution of Chartered Surveyors (RICS).

This is because the number of properties on the market now outnumbers the amount of people wanting to buy homes, the institute said.

RICS reached their conclusion after surveyors discovered that the number of inquiries from new buyers fell during the month of July.

They feel this reduction in inquiries, only the second since October 2008, is also partly because potential buyers are becoming increasingly concerned about the outlook of the economy, with government cuts set to be introduced in the upcoming months.

However, the survey did show that sellers are now returning to the market, at levels not seen for three years. This is a result of Home Information Packs being abolished, having proved very unpopular since they were introduced in 2007, RICS said.

The survey concluded that while house prices are likely to decrease, property sales should continue to rise, with the average surveyor having sold 17 homes between May and July.

Meanwhile, a separate forecast by accountancy firm PricewaterhouseCoopers suggests that house prices may not reach pre-credit crunch levels for another ten years.