Surveyors see soft landing for housing

House prices rose at the slowest rate for a year in December as house buyers waited to see which way the market moved, an industry report today shows.

Prices rose last month in all regions except London, where there was a slight fall, the Royal Institution of Chartered Surveyors said.

The number of surveyors reporting a rise in prices last month was the lowest since December 2001. More than one in 10 agents said prices fell.

RICS said the slowdown raised hopes that the market had embarked on a long hoped-for soft landing, rather than the feared crash.

Ian Perry, RICS national housing spokesman, said: "The market in London and the South-east is delicately balanced, with a definite sense of caution among buyers.

"However, there is no sign of a market crash in the offing as some reports suggested last month, with other regions still experiencing strong increases in values."

He said that if the capital saw a soft landing in the housing market other regions were likely to follow later this and next year.

RICS said London's decline in buyer activity was partly down to people waiting to see what prices did, following intense speculation in December over the direction the market would take.

A recent survey from Rightmove, based on the asking prices at estate agents across the UK, showed a fall in December especially in London.

RICS said if prices showed signs of falling, potential buyers were likely to hold back in anticipation of further prices falls. If prices remain stable or rise, activity will pick up as more buyers move in, it added.

Prices outside London are still increasing. In the South-east and East Anglia rises are relatively small, with net balances of RICS members seeing an increase of 19 per cent, and 31 per cent respectively.

Price rises were more widespread in the West Midlands (44 per cent), while the market across the northern regions and Wales is still seeing boom conditions, with net balances upward of 60 per cent.