Chartered Surveyors Call for Rate Cut

According to the Institution of Chartered Surveyors House Prices fell in December at their fastest rate for 15 years. (This suggests recent data from the Halifax showing rising house prices may have been unreliable.)

The study shows 49.1% more surveyors reported a fall than a rise. November’s level was 40.6%. Falling house prices were reported across the country with only the Scottish Housing Market showing any resistance to falling house prices.

The Institute of Chartered Surveyors said it was important to have an immediate cut in interest rates to boost confidence in the economy in the housing market.

The news came on a bad day for UK Finance. The Stock Market fell 3% on further fears over the global credit crunch. The government also appeared to be gearing up for the idea of nationalising Northern Rock.

Although house prices may fall in 2008, the Institute of Chartered Surveyors said that economic fundamentals are different compared to 1992 (when house prices fell by 30%) interest rates and inflation are relatively lower and there is scope for cutting interest rates. A collapse in prices is unlikely at the moment.