U.K. House Prices Decline At Slower Pace In August: RICS

U.K. House Prices Decline At Slower Pace In August: RICS - U.K. house prices declined at a slower than expected pace in August as surveyors expect housing activity to improve on government measures, a monthly survey from the Royal Institution of Chartered Surveyors' (RICS) showed Tuesday.

The index measuring the average asking price for a home in the U.K. came in at -19 in August, up from July's revised balance of -23. This beat forecasts for a score of -22.

At the regional level, London remains the only area where the price balance is positive.

Among individual components of the survey, the newly agreed sales balance jumped to 5 from -18 in July, while the new seller instructions balance rose to 0 in August from -12.

Despite the Olympics taking centre stage throughout much of August, it did not have any real impact on the proportion of sales going through, said Ian Perry, RICS spokesperson.

In August, the Bank of England along with the government had initiated the 'Funding for Lending Scheme' to boost lending to households and companies.

Further, Prime Minister David Cameron unveiled last week a package to boost the housing industry that includes relaxation of planning laws and cash injection. The government will guarantee as much as GBP 40 billion of new infrastructure projects.

The survey respondents' price expectations for the coming three months as well as a year ahead improved in August, RICS said. Surveyors see an improvement in lending conditions and cheaper finance as a result of measures taken so far by the government and central bank.

The recent Halifax house price survey showed that house prices were down 0.4 percent month-on-month in August and 0.7 percent in July.

According to Lloyds Banking Group's Halifax division, gradual upward trend in spending power, supported by lower inflation, will possibly support housing demand in the coming months.

Source: InstaForex