The one type of property resisting the house price slump

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Soaring energy bills have also made these properties less appealing for prospective homeowners.

Jonathan Hopper, of buying agents Garrington Property Finders, said older homes that require upgrades are seeing greater price reductions in order to attract buyers.

He said: “Properties that require refurbishment and a lot of work doing to them have fallen out of flavor. The call on cash to service debt and get the deposit where it needs to be to balance the mortgage figures at the moment has meant a lot of people that may have taken on a project are just not interested.

“Building costs have spiralled and getting hold of a builder is a challenge in itself, and then the expense of actually going through a full refurbishment with an unknown end value is just not appealing to buyers.”

The RICS survey also indicated that house prices were falling in more areas. The organization’s price gauge fell further into negative territory, with a net balance – the difference between respondents reporting higher rather than lower prices last month – of -42pc, down from -26pc in November.

RICS said the “downward trend” in prices was “gaining further impetus”. All regions across England are now seeing prices soften but sentiment declined most sharply in East Anglia and the South East.

By contrast, the house price readings in Scotland and Northern Ireland had a marginally positive net balance, but this was still down from strong growth reported six months ago.

The gauge for new listings fell to its lowest level since September 2021, with a net balance of -23pc.

Inquiries from new buyers had a negative reading of -39pc, down from -38pc the previous month.

Agreed sales continued to plunge as the sales gauge hit -41pc, compared with -36pc last month.

More respondents said they expected sales to continue falling. Prices are forecast to continue dropping but estate agents were slightly less negative than they were in November.

In the rental market, tenant demand rose and the number of properties becoming available to rent continued its downward trend, meaning rents are expected to keep rising.

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