House prices dip in April, RICS survey shows

House prices dipped in April as sentiment in the London market dropped to a low not seen since the UK was in recession, the monthly RICS survey showed.

The balance of estate agents reporting rising or falling prices was -8% in April after two flat months. Though the decline was slight, it was the most negative figure since November 2012, RICS said.

The national picture was heavily skewed by intense gloom in the London market, where prices continued to fall and the price balance of -65% reached a low not seen since February 2009.

The Royal Institution of Chartered Surveyors – or RICS – survey showed a mixed picture. Prices fell in London and the South East and declines spread to the South West for the first time since May 2013 but prices rose in Scotland and Northern Ireland.

The near-term outlook for prices was flat in April but 31% more respondents expected prices to rise in a year. Sentiment was strongest in Scotland and the North West but in London the mood was negative with 20% more respondents expecting prices to fall in the next year. Buyer enquiries and sales volumes held steady after declines in previous surveys.

Simon Rubinsohn, RICS’ chief economist, said: “The housing market typically tends to see a pick-up in activity at around this time of the year and the feedback from respondents to the latest survey does seem to be capturing this tone. However, once this seasonal pattern has been allowed for the underlying trend in transactions still remains broadly flat.”

The RICS survey adds to signs of weakness in the UK property market, which has been affected by reduced consumer spending power and economic and political uncertainty.

The Halifax house price index for April, released on 8 May, was weaker than expected. A 3.1% month-on-month fall took growth in the three months to April down to 2.2% from 2.7% in March.