Most widespread fall in house prices since 1992

House prices are falling across the country according to the Royal Institute of Chartered Surveyors.

10:21 16 November 2004

House prices are falling across the country according to the Royal Institute of Chartered Surveyors.

In its report for October, the RICS found 41 per cent of surveyors reported a fall in prices.

It is the latest evidence that the long period of house price growth has come to a halt.

Jeremy Leaf, RICS housing spokesman, said: "Sellers are accepting valuers' estimates more readily and negotiations before a sale is agreed are harder."

Whether the boom will turn to a recession is widely disputed, however.

Mr Leaf added: "Despite the gloom, the professionals on the ground believe that confidence will not deteriorate further over the coming months as the underlying factors, jobs and the wider economy, remain stable."

The main reason for the fall, which is fastest in the south-east and has not happened yet in Scotland, is thought to be the five interest rate rises of the last year.

The Bank of England hiked interest to 4.75 per cent in a deliberate effort to curb inflation and restrain the housing market.