Surveyors report house price falls

A total of 54.7% more chartered surveyors saw lower house prices in January than those who reported rises - the Royal Institution of Chartered Surveyors (Rics) said.

The figure was up from 49.1% in December and has yawned since the 3.1% balance last August, providing more evidence that the UK is experiencing a housing market slowdown.

Last month's balance is the highest since the 60.1% recorded in November 1992, when the measure grew for five months in a row.

Rics said the rising price balance was being driven by weakness in the demand for property, rather than a drop in supply coming on to the market.

Continued fall-out from the credit crunch was continuing to prevent would-be-buyers from entering the market, the professional body said.

Earlier this week figures showed the number of home loans granted slumped more than 20% in December. And Britain's biggest mortgage lender Halifax said the annual rate of house price growth continued to fall last month.

Demand remained subdued with 35% more surveyors reporting a fall in the number of people looking to buy a new house compared with those who saw an increase, while new instructions to sell property slipped back into negative territory in January.

Rics said the stock of unsold property on surveyors' books also jumped by more than 10% and has increased by more than 40% since last September.

Rics spokesman Jeremy Leaf said demand would increase if more mortgage providers passed on this month's 0.25% rate cut to borrowers. He said: "Tightening mortgage lending criteria is a block to many who are keen to take the housing market plunge. However, if mortgage lenders filter the recent interest rate cuts into the market, demand should begin to increase."