The Hometrack April survey of the national housing market has reported a small fall of 0.1 per cent resulting in house prices decreasing for ten consecutive months.
The average price now stands at £162,100, down from a peak of £167,700 in June last year.
In contrast to lacklustre price changes, activity has increased again. Sales agreed have risen to 27.3 per cent, up 9.4 per cent from the March figure of 16.5 per cent.
But, even though buyers have been returning to the market, the backlog of properties registered with estate agents means there is considerable oversupply.
John Wriglesworth, Hometrack’s housing economist, said: “The forthcoming election, a change of Pope and a newly married heir to the throne have done nothing to improve the housing market which remains in the doldrums.
“Despite buyers returning to the market, there continues to be an excess supply of unsold properties. Election jitters are not helping.
“Post-election, whichever party wins, there is likely to be a bounce back in the market as the economic and political prospects become more certain, thus encouraging consumer confidence to return.”
The Royal Institute of Chartered Surveyors (RICS) monthly housing market survey for April revealed house prices fell for the eighth consecutive month with the balance of power remaining with buyers.
Jeremy Leaf, national housing market spokesman at RICS, said: “While there are no signs of a collapse, housing market activity showed little change in March, but we expect good job prospects and stable interest rates to lead to improved sales as the year progresses.
“Getting onto the property ladder is currently easier for first-time buyers as buyers increasingly call the shots. Sellers must be more realistic if they want to secure a sale.”
