Only 5% of chartered surveyors reported a rise in the number of lettings or sales throughout England and Wales, while 43% reported a fall. And the slump in activity is most marked in the office market which saw 52% more surveyors reporting a rise than a fall, compared to 41% in the third quarter of 2001. The only property sector to show continued activity was out of town retail warehousing, benefiting from a boom in consumer spending.

Overall business optimism among chartered surveyors is at a seven year low. Graham Chase, chairman of the RICS commercial property faculty, said: 'The well documented falls in confidence in UK business, ongoing profit warnings and nervous worldwide stock markets continue to set the tone. Not surprisingly, demand for business space continues to decline with both landlords and tenants taking appropriate action to protect their downside.'

But Chase asserted that the statistics did not point towards another property crash. He said low levels of development activity would prevent a catastrophic oversupply of space, and robust consumer expenditure coupled with low interest rates would help to maintain property values. But he warned: 'The health and strength of the occupier is ultimately the most important element of any property, and in this respect the commercial market has a difficult time ahead in certain sectors, particularly central London and Thames Valley offices.'