RICS - the worst may be over

The Royal Insitute of Chartered Surveyors(RICS) believes that the heaviest falls in house prices are behind us, going against current opinion of more house price falls in 2008.

Housefund.co.uk - 21 December 2007

RICS said that the Bank of England’s commitment to keep the market liquid will mean that interest rates will be cut back to five per cent during the first 6 months of 2008, making any negative price growth in the market short-lived.

Repossessions to increase
However, RICS said that repossessions are set to rise from 30,000 to 45,000, but emphasised that the current employment situation is strong enough to keep the market resilient and avoid any repeat of 80,000 repossessions back in the 1990s.

And those set to prosper the most from the softening conditions could be first-time buyers, who could add a much-needed market boost should they capitalise on lower house prices - full article