The modest fall-off in buyer enquiries reported last month looks set to continue in September, and agents expect this softer trend to be sustained in the months ahead.

RICS chief economist Milan Khatri said: 'We have been forecasting a gradual decline in the housing market and it now looks to be underway. The terrorist attack on September 11 has undoubtedly had an effect on the market in the short term, with a fall off in buyer enquiries in recent weeks, but the greatest influence on the housing market is the deteriorating economic outlook.

'Low and falling interest rates will support the market, but international uncertainty means that recovery in UK growth could be delayed until the middle of next year or even later.' The full survey is due out on October 23.

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