UK house prices set for modest falls

Investors in the UK property market may be interested to hear the latest predictions from the Royal Institution of Chartered Surveyors (RICS).

According to the body, the surplus of real estate available on the market during the second half of 2010 is likely to lead towards residential prices in the country falling.

However, RICS claims that over the six-month period sales will gradually increase.

The June Housing Market Survey shows that demand from new buyers fell for the second time since October 2008 during the month, which reflects the uncertainty surrounding the economy.

"A shortage of stock has been one factor holding back transaction activity in the housing market, but the abolition of HIPS is helping to belatedly address this issue," said RICS spokesperson, Jeremy Leaf.

"However, with supply of property now beginning to outstrip demand, there is a risk of some modest slippage in prices during the second half of the year."

Meanwhile, there is likely to be an increase in activity within the central London property market now that the election and Emergency Budget have passed, London Central Portfolio has claimed.