House prices are falling at record rate confirming the end of 10-year boom

House prices are falling in many parts of the country at their fastest pace since records began in 1978, a report has warned.

Across England and Wales, prices are dropping in every region.

And the speed of the decline is at record levels in East Anglia, the South-West, Yorkshire, Humberside and the East Midlands.

The report, from the Royal Institution of Chartered Surveyors, is the latest to confirm that the decade-long house price boom is over.

Soaring numbers of homes are being put up for sale but failing to find a buyer.

The average estate agency has 92 homes on its books, the highest level for a decade. Over the last year, the average number of unsold properties has risen 49 per cent.

Potential buyers are being put off by the fear that a property which they buy today will be worth less tomorrow.

Other would-be buyers are struggling to find a mortgage as banks and building societies introduce more stringent lending criteria.

Ian Perry, an RICS spokesman, said: "The build-up of unsold properties will encourage buyers to negotiate lower asking prices."

The RICS report reveals a gloomy mood among estate agents. One said: "Sellers are having extreme difficulty finding buyers. The market is just not performing as it should be as we approach the prime selling months."

Many agents interviewed by the RICS said buyers are making offers, but far below levels that sellers are prepared to accept.

Richard Donnell, a director of the property information firm Hometrack, predicted that only 1.05million homes will be sold this year.

This is a dramatic turnaround from last year when 1.25million were sold in England and Wales, close to an all-time record.

Overall, the report found the "balance" of estate agents reporting a fall in house prices was at its highest level since the dark days of 1990.

That year marked the last property crash, when prices started falling and did not recover for six years.