Price balance 'falls at fastest rate for 2.5 years'

The Royal Institution of Chartered Surveyors (Rics) has revealed that housing market sentiment among its members fell at the fastest rate since July 2005 last month.

22.2 per cent more chartered surveyors reported a fall rather than a rise in prices in October, down from 14.9 in September, the study found, with other indicators also down.

Surveyors also reported further declines in new instructions to sell property as well as new buyer enquiries, though existing homeowners are under little pressure to sell as of yet, the study added.

"Credit market turmoil has yet to put downward pressure on prices in the capital although prices have now stabilised even here," said Rics spokesperson Ian Perry.

"Significantly, London is the only region where new instructions have risen over the last two months indicating that more leveraged buyers at the margins may already be feeling the credit squeeze," Mr Perry added.

The report comes after the Department of Communities and Local Government reported that prices rose by 0.3 per cent in October.

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