The rebound in the West Midlands housing market ran out of steam in April as prices edged lower.
The region saw the most significant decline in the UK with 43 per cent more chartered surveyors reporting falls rather than rises in house prices, according to the latest RICS UK Housing Market survey.
Surveyors’ predict a dip in future prices with expectations for transaction levels flat.
Transaction levels edged downwards in April, as two per cent more respondents reported increases in newly agreed sales.
Peter Bolton King, RICS housing spokesperson, said: “With the upturn in activity brought on by March’s stamp duty holiday coming to an end, it is unsurprising to see that prices across much of the West Midlands are continuing to fall.
“Renewed concerns over the economy and talk of a double dip recession dominating the headlines in recent weeks may well have served to undermine consumer confidence.
“What’s more, the continuing lack of affordable mortgage finance is still hindering many first time buyers who cannot afford to get a foot on the property ladder.”
Demand from potential buyers remained in positive territory during April as eleven per cent more surveyors reported increases in new buyer enquiries.
New instructions, a good indicator of supply coming onto the housing market, dropped off as 27 per cent more respondents reported falls in new homes coming up for sale.
London was again the only part of the country to see prices rise, albeit at the slowest rate since the middle of 2011.