HOUSE prices across the South East have fallen for the 10th consecutive month, according to the latest Royal Institution of Chartered Surveyors’ (RICS) monthly housing survey.

The balance of power remains with buyers and although the level of residential properties coming onto the market was not as high as in February, the property supply during March was still 23 per cent higher than the same time last year.

Against the backdrop of rising housing supply and falling prices there are indications that some sellers are holding onto unrealistic expectations which is restricting sales.

March saw house prices fall further, at a slightly faster pace. An estimated 37 per cent of chartered surveyors reported a fall in house prices.

Trevor Hines, RICS South East regional director, said: "Property sales were affected by an early Easter and ongoing fears of further interest rate rises. The continued uncertainty also dampened new purchase enquiries which remain stagnant."

With the market being restrained, the RICS envisages further price falls. But it is optimistic sales will increase as underlying economic conditions improve further, with prospects for new jobs remaining strong in 2005.

Mr Hines added: "While there are no signs of a collapse, housing market activity showed little change in March, but we expect good job prospects and stable interest rates to lead to improved sales as the year progresses.

"Getting on the property ladder is currently easier for first-time buyers as they increasingly call the shots. Sellers must be more realistic if they want to secure a sale."