British house prices fell in March at the sharpest rate in nearly eight years, the Royal Institute of Chartered Surveyors (RICS) said.
The Institute's monthly housing market survey said the balance of surveyors reporting house price rises to those reporting losses in the three months to March had dropped to -25 per cent, the lowest reading since August 1995 and down from -9 per cent in February.
February's reading marked the first price fall in two-and-a-half years and, in a sign of perhaps future weakness, the RICS said available supply of property on the market, which is on the rise, could increase further in coming months.
House prices are a key determinant of consumer spending in Britain where two-thirds of families own their own homes. Analysts said the latest figures suggest the Bank of England is more likely to cut interest rates in the months ahead to keep demand buoyant.
The RICS said the price falls were "slight" in themselves but emphasised by the fact the market is in a traditional period of pre-Easter strength.
The survey also highlighted disparities in house price inflation patterns between regional house markets.
In London, East Anglia, the South East and South West, most surveyors reported dropping prices. But 62 per cent of surveyors in the North reported house prices were still climbing.
Reuters