Confidence in housing market hit

Chartered surveyors’ confidence in the housing market has been hit by falling house prices.

According to the Royal Institution of Chartered Surveyors, 40.6% of surveyors reported a fall in house prices in November, compared to 23.4% the previous month.

This means the Bank of England may reduce interest rates further, following the recent reduction to 5.5%.

The number of unsold properties on estate agents’ books rose by around 9%, as enquiries from new buyers also declined.

Jeremy Leaf, spokesman for the Royal Institution of Charted Surveyors, said: “It is clear that the housing market continues to feel the strain of depressed market conditions. The recent credit crunch continues to hit confidence in the market.”

However, Mr Leaf also said that house prices were unlikely to fall sharply while the job market in Britain remains in good shape.

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