The RICS house market survey found that 49.1% more surveyors saw price falls in December than reported a rise, the gloomiest figure since November 1992.

According to the RICS, prices have been hit by 2007's interest rate rises and tighter lending criteria.

Research from the Department of Communities and Local Government, the Halifax bank and the Nationwide building society have all pointed to a slowing market.  
 
Demand for property also fell in December with 25% more surveyors reporting a fall in people looking for a new house than a rise.

The RICS also found that confidence among surveyors about sales and prices fell in December to its lowest levels in a decade.