House Prices Drop! Greengates Builders Merchants Accrington, Lancashire Were Shocked To Hear This News
House prices are starting to fall, the Royal Institution of Chartered Surveyors (Rics) has said.
Most surveyors had seen no change in the past three months, but those seeing a fall in prices outnumbered those reporting a rise.
It was the first time since July last year that the monthly survey has detected a downturn.
Rics said more homes were being put up for sale, while inquiries from new buyers had fallen for the second month.
Buyers were finding it hard to get a mortgage, while fear of unemployment was putting off others, Rics added.
"The fall in the Rics house price measure [in July] is broadly consistent with most other recent data that has been released," said Rics spokesman Ian Perry.
"Significantly, the forward-looking price expectations numbers suggest that this softer trend will continue through the second half of the year.
"However, agents are still generally optimistic about sales activity, which should benefit from more realistic pricing of properties," he added.
It shows that seasonally adjusted average prices were unchanged across the UK in June. "UK house prices rose by 0.8% in the quarter to June 2010 compared to an increase of 2.8% in the March quarter," the DCLG said.
In the past year, the DCLG figures show that all parts of the UK have seen prices increase, except for Northern Ireland where they have fallen by 8%.
Recent surveys from both the Halifax and the Nationwide have also shown that the upturn in house prices, which started in the spring of 2009, has been cooling off.
That rise had been driven largely by a shortage of homes being put up for sale, but now the balance of supply and demand has reversed.
Rics said its members expect the downward pressure on prices to continue.
This cut the annual rate of increase to 9.9%, from 10.6% in May.
Greengates Builders Merchants was shocked to hear this news although it had been expected for some time.