The RICS survey is the latest in a growing number of indicators showing that the recent recovery in property prices has run out of steam, said Datamonitor’s Daoud Fakhri.

“As more property has come onto the market, the low level of demand has come back into play, depressing prices once more. It is likely that prices will remain static, or even fall for some time to come.

“Demand for property will remain low for the foreseeable future, due both to the lack of consumer confidence and to the ongoing shortage of mortgage finance, which continues to affect first time buyers particularly,” he said.

He said if prices continue to fall, low or negative equity could become an issue again. 

“Lenders are still strictly rationing high loan-to-value mortgages, so the outlook for the mortgage market, therefore, could best be described as poor-to-uncertain,” said Fakhri.

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