First time buyers see prices fall

13-Sep-2007

House prices fell last month for the first time in almost two years, the Royal Institution of Chartered Surveyors (Rics) has said, but the organisation advised that this may well be because first time buyers themselves are increasingly being priced out of the market.

Of those surveyed, 1.8 per cent more chartered surveyors saw a fall as opposed to a rise in prices over the month, compared with 10.8 per cent more seeing a rise in July.

Enquiries from first time buyers, meanwhile, fell at their fastest rate for three years and for the ninth consecutive month.

"Potential house buyers have become far more cautious as they wait and see what affect interest rate rises will have on household finances," commented Rics spokesman Ian Perry.

"The market will soften further, going into the autumn, reducing some impetus from those that have been chasing a rapidly moving target," Mr Perry added.

However, earlier this month Haart advised that the slowing house market would encourage more first time buyers to return to market in the next few months.

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