“Unrealistic” house price expectations hindering sales – RICS

Its latest survey found that surveyors' sales expectations for the next three months have dropped 4% to a net balance of zero, while transactions in December remaining relatively flat at 15.2 per surveyor.

This was down slightly on November, but remained close to the best level since autumn 2010, RICS said.

New instructions rose for the third consecutive month in December, with 12% more surveyors reporting an increase than a fall in new homes coming to market and London seeing the greatest rise since January 2005, with 38% more surveyors seeing an increase in supply.

Demand from buyers remained flat, with just 2% more surveyors seeing new buyer enquiries increasing in December, while house prices dropped, but at their slowest rate since June 2010.

Ian Perry, RICS housing spokesperson, said: "While it's encouraging that sales activity held up relatively well towards the end of the year, continuing problems with the economy and the ongoing instability in the eurozone seem to be weighing heavily on the UK housing market and expectations for the coming months are fairly subdued.

"The increasing number of prospective sellers who placed their homes on the market in December is a positive development as a lack of stock has been a big issue in some parts of the country.

"But with sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish the sale to go through in good time."