The RICS this week added to the mounting gloom over UK house prices, with one of its worst monthly surveys for nearly 12 years.

Fifty-six per cent of surveyors reported a fall in house prices for the three months to October, whereas only 3% reported rises. This was the biggest proportion of surveyors reporting a fall since December 1992.

Sales have fallen 25% in the past year, the sharpest decline in nine years, and new enquiries fell for the sixth consecutive month.

A rise in the number of sellers has contributed to a 10% increase in unsold properties over the past three months, although the RICS said there was little evidence of panic selling.

The south of England continues to show the largest price falls, followed by the Midlands. Prices in Wales and the North of England have shown modest falls, while Scotland is the only location to show price rises.

A RICS spokesperson said: 鈥淏uyers are still nervous, which is not surprising given the quick-fire interest rate rises over the summer.鈥�

The RICS is expecting further price falls in the next three months, but said there were signs of a stabilising demand from London homebuyers.

Analysts at Bridgewell, a research-based institutional stockbroking business said: 鈥淚ndustry statistics and anecdotal evidence from estate agents have seen business all but grind to a halt in recent months.

鈥淭he quiet summer was clearly more than a blip.鈥�