House prices down

The Royal Institution of Chartered Surveyors (Rics) has published its Housing Market Survey for November, revealing that property prices fell.

A total of 40.6 per cent of chartered surveyors reported a fall rather than a rise in prices - the largest decline for over two years.

In addition, six per cent more chartered surveyors reported a fall rather than a rise in new instructions to sell.

"It is clear that the housing market continues to feel the strain of depressed market conditions. The recent credit crunch continues to hit confidence in the market, with Chartered Surveyors feeling the most pessimistic about price expectations since 1998," said Jeremy Leaf from Rics.

"However, while underlying economic fundamentals remain sound and the labour market remains strong, large falls in prices remain unlikely.

"Employment would have to fall sharply before enough supply entered the market to create a significant dip," he added.

Many commentators hope that the Bank of England's recent decision to cut the base rate of interest will help to rejuvenate the housing market.

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