Fall in house prices 'not as bad as you may think'

7:49am Wednesday 14th May 2008

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HOUSE prices in Worcestershire are not falling as quickly as in other parts of the country, according to a new report.

A monthly survey by the Royal Institution of Chartered Surveyors revealed that although more than three quarters of its members in the county had reported a fall in house prices in April, the figure was not as high as in some areas of the UK.

A further 19 per cent of surveyors in Worcestershire said prices had remained the same and, as in March, four per cent reported a rise.

One Worcestershire estate agent - Andrew Grant - bucked the national tred to report its best week for agreed sales this year, with 30 new deals totalling nearly £10 million.

The agent's executive officer David Stuart-Smith, who is also RICS spokesperson in Worcester, said: "Although confidence in the housing market is being undermined by credit restrictions and faltering economic strength, our statistics are factual evidence of significant levels being maintained among those involved in the house moving process.

"There is hesitancy in the Worcester market among sellers, as well as buyers, and the awareness of sluggish conditions is causing a slowdown of new instructions and a reluctance for buyers to commit.

"However, sellers who adopt keen and realistic prices are more able to secure sales, with buyers attracted by apparent good value."

They were sentiments echoed by Morgan Aps, partner at John Saunders in Worcester, who said: "Our quality properties in town and country are still selling well and our sales figures are actually above those of the same time last year."

Carole Bradley, Worcester director of Connells, said the position was not as bad as some people believed. She said: "The media is talking the market down and this is affecting the confidence of buyers."

The RICS said price falls were being driven by the inability of many to secure finance rather than by more houses on the market due to panic selling.

Nationally, 95.1 per cent more chartered surveyors reported a fall than a rise in house prices, an increase from 79.4 per cent in March.