UK surveyors reported price falls across the board in February, according to the RICS…

The number of UK surveyors reporting house price falls in February was close to the historic level of June 1990. RICS spokesman Ian Perry said: ‘Cautious homeowners have caused housing stockpiles to rise to levels not seen for a decade. People who would otherwise have made an offer on a home are now being much more cautious.

“This lack of demand means the stock of unsold property on surveyors' lists was up by 8.5% in February - the fifth monthly rise of more than 8%. It means that there will be even more pressure on sellers to be more realistic".

Confidence affecting prices

Ian Perry added: "Confidence in the market is clearly having an effect on prices. While there is very little new supply coming onto the market, it is unlikely that there will be significant price drops in the short term but the build up of unsold stocks will encourage buyers to negotiate lower asking prices."

The number of surveyors across the country reporting price falls was almost as low as the trough seen in 1990. Some 64.1% more surveyors reported a drop rather than an increase in February - up from 54.7% in January. But the survey said Scotland was bucking the trend, with 25% more reporting price rises, an increase of 18%.

Ian Perry concluded: “Many would-be buyers are struggling to raise the cash they need because of the credit crunch. Others, are waiting to see what would happen to the economy in the coming months”.