The Royal Institute of Chartered Surveyors (RICS) have reported that house price growth remained negative for the third month in succession. Around 22% more chartered surveyors reported a fall rather than a rise in house prices, compared to 14.9% in September, which is the fastest decline in sentiment since July 2005 when 30.9% reported a fall than a rise.

In addition, new instructions also declined for the fifth consecutive month; 17% more chartered surveyors reported fall rather than a rise in new instructions to sell property. The supply side of the market remains tight and continues to provide some support. Interest rate rises and the tightening of lending conditions have all had an impact upon demand.

New buyer enquiries also declined for the 11 th consecutive month with 41% more chartered surveyors reporting a fall than a rise. Weak demand has pushed the stock of unsold property up at the highest pace since May 2003, with unsold property per surveyor rising to 64.9% compared to 59.7% in September.

Ian Perry, RICS spokesman, said: “Credit market turmoil has yet to put downward pressure on prices in the capital although prices have now stabilised even here. 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.”