House prices in Britain have dropped for a fifth month in a row in the three months to the end of June but signs are emerging the market is close to bottoming out, according to a key report.
The Royal Institute of Chartered Surveyors (RICS) said a balance of 12 per cent of its members saw house prices decline in the three months to the end of June - less than the net 26 per cent in May.
"The housing market showed some signs of stabilising in June with prices declining at the slowest pace since February," RICS said in its report published today.
"However, caution remains on the price outlook with surveyors commenting on the lack of first-time buyers as a factor keeping a lid on the market".
Surveyors were more bullish on the housing market than a month earlier with fears that falling house prices could undermine the tentative recovery in Britain's economy receding.
Nearly 70 per cent of people in Britain own their own home and strong consumer spending - boosted by rising house prices - has helped keep the economy ticking over during the economic downturn of the last three years.
But completed sales hit their lowest level since December 2000, meaning unsold properties rose to levels not seen since September of the same year.
However, both measures show signs of slowing, underlining the belief that conditions in the housing market are improving.