Housing sentiment hits new low
Sentiment in the UK housing market has sunk to its lowest since records began in 1978, according to the latest report from the Royal Institution of Chartered Surveyors (RICS).
The RICS house price balance fell for the eighth month running in March, with 78.5% more residential property agents and surveyors reporting falling house prices than rises, up from 65.7% in February.
Last month's figure even topped the gloomiest figures seen during the recession of the early nineties.
"Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight," said RICS spokesman Jeremy Leaf.
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"The slowdown in prices is directly attributable to a lack of available finance which has hit demand."
But in an interview with Bloomberg TV, RICS economist David Stubbs said: "The situation we have is serious and it will get worse. It will take more interest-rate cuts and a restoration of confidence before we see a return to health."
Many prospective buyers appear to be waiting for the dust to settle, with the balance of those registering with estate agents down to minus 49, a five-year low.
