Following the astounding fall in the price of houses in May 2009, the previous month saw even a worse debacle for housing prices in England. The Royal Institution of Chartered Surveyors has stated the fall to be the worst for housing prices in the past one year.
According to the RICS price index, the three months to the month of August fell to -32, whereas, the RICS house index fell to -36 to the month of September. The blame has indirectly been put on the spending cuts that would be applied from the next year, as house owners had filled the market with offers as they feared a lack of buyers following the spending cuts.
The RICS has further announced that the balance for new instructions rose to +22 in comparison to the earlier reading of +12. In contrast, the balance for new buyer inquiries fell to -2, a very depressing sign for the housing market.
The spokesperson for the Royal Institution of Chartered Surveyors, Ian Perry while commenting on the development stated that the sudden flow of properties in the market had led to the current problem in the market. The problem further worsened due to a shortage of buyers.
House prices in England have suffered immensely ever since the recession kicked in. They have witnessed a fall of 20% from 2007 to the year 2009.