HOUSE prices have fallen in the South East for the fifth consecutive month, according to the latest Royal Institution of Chartered Surveyors (RICS) report.

Lack of new buyers has contributed to this large fall-off in activity, with the number of sales down by a quarter over the past year, their lowest level in nine years.

The rate of decline has dropped to its slowest pace since May though, reflecting a cautious optimism among potential purchasers that interest rates have peaked.

Despite continued speculation over further falls, there is little evidence of panic selling and signals from London suggest a levelling-off in prices.

Traditionally the capital’s market is a reliable indicator for emerging South East trends and this may be an early signal that declines are coming to an end.

Trevor Hines, RICS South East director, said: “Buyers are still nervous, which is not surprising given the quick fire interest rate rises over the summer.

“This is clearly reflected in the current strength of the lettings market. Sellers are accepting valuer estimates more readily, and negotiations, before a sale is agreed, are harder.

“Professionals believe that confidence will not deteriorate further over the coming months as the underlying factors, jobs and the wider economy, remain stable.”