Property values to fall 2% by end of 2011

The trade body said falling property supply should help stabilise prices in H2 2011 with prices edging up again towards the end of the year. It says the risk that larger public sector job cuts than expected will depress buyer interest is likely to be offset by lack of supply, resulting in price falls of less than 5%. RICS estimates the average volume of transactions will amount to little more than 900,000 over the course of 2011. The tight lending conditions are unlikely to loosen next year, it added, producing transactions at a similar level as 2010. Meanwhile, repossessions are l...