British house prices fall at slower rate in May

British house prices fell at a slower pace in May, although the outlook worsened as the Eurozone crisis intensified according to a survey by the Royal Institute of Chartered Surveyors.

The seasonally adjusted house price balance rose to -16 from -19 in April, beating economists’ forecasts for a -18 reading.

London was again the only part of the country where house prices rose.

“Ongoing economic instability in the UK and overseas has continued to undermine consumer confidence, and the reluctance of many banks to offer affordable mortgage products has created something of a stagnant market,” said RICS housing spokesman Peter Bolton King.

“In spite of this, a gradual stability is returning to the market and surveyors expect transaction levels to increase over the coming months, even if prices continue to dip across most parts of the country.”