Residential conveyancing news: House prices set to fall further in 2011

Posted 22/12/2010

Those thinking of using the services of a residential conveyancing solicitor to buy a property for the first time are likely to find that prices will fall in 2011.

This is according to the publication of new statistics from the Royal Institution of Chartered Surveyors (Rics), which showed that the cost of a home will drop by at least two per cent and perhaps up to five per cent.

This was put down to the government’s austerity measures and a reluctance to spend in the current economic climate.

However, Rics said prices may begin to creep back up by the end of 2011.

“Even in this environment, our judgment is that the lack of new supply is likely to prevent the decline amounting to very much more than five per cent,” a spokesperson commented.

This correlates with recent news from Rightmove, which stated that sellers are dropping house prices by as much as £7,000.

The organisation also said it expects the cost of property to fall by up to five per cent next year.