New buyer enquiries dropped for the fifth consecutive month as tight lending conditions and more caution from buyers led to homeowners delaying purchases.
The RICS findings chime with the latest Nationwide and Halifax indices, which both showed quarterly price falls.
Instructions to the market, which have been rising more or less consistently since July last year, saw a sharp drop, according to RICS.
Sentiment over house prices continues to worsen, with 49 per cent more surveyors reporting house prices fell rather than rose in October, compared to 36 per cent in September.
Across the UK, the East Midlands and East Anglia recorded the most negative sentiment from surveyors.
RICS spokesperson, Jeremy Leaf said: “With both supply and demand falling, transaction activity is set to remain at relatively flat levels for the foreseeable future.
“Agents may be cautious about what this could mean for house prices in the short term, but dramatic falls are likely to be limited by a gradual drying up of stock coming to the market,” he said.
Leaf said a subdued housing market is not good news for an economy which requires a high degree of mobility to take advantage of job opportunities.
Alison Beech, business relationship director, Spicerhaart and Valunation,said: “Activity is subdued and house prices are falling across the majority of the country – a trend which looks set to continue over the next few months into the New Year against a backdrop of depleted consumer sentiment.”
She added: “On the flip side of the coin, we may be set to see affordability improve, eventually allowing a greater number of first time buyers to get a foot on the housing ladder, which will open the way for more healthy market activity.”
However. she said continual price growth is not sustainable and the characteristics of today’s market may turn out to be a lot more durable than the blip it was originally thought to be.
