DAVY VIEW

Most of the price and activity readings from this morning’s Royal Institution of Chartered Surveyors (RICS) survey for October have collapsed, close to mid-2008 levels when the pace of UK house price inflation was entering negative double-digit territory and transactional activity halved. The only possible respite is that mortgage interest rates will gradually recede below 6% in the coming months. However, substantial falls in UK house prices now look likely in the near future.