The seemingly relentless rise in the housing market faltered as general economic slowdown combined with fears of war to see a small price decline in London and the South East, with prices static across the South West, Midlands and East Anglia. Prices across northern England and Wales continue to increase strongly but, says the RICS, if the slowdown in southern areas continues the North is likely to see values plateau later in the year.

In contrast to the slowdown in price rises, the number of homes being put up for sale jumped sharply in January, far exceeding the usual post Christmas/New Year increase. The RICS believes that this is likely to be the result of homeowners bringing forward their sales plans in order to sell at the top of the market. The RICS Spring residential lettings survey will show whether homeowners in London and the South East have sold and are waiting to profit from buying in a declining market by moving temporarily across to the rented sector.

There was also a significant increase in the number of people registering to buy in January. However, in the current uncertain climate, RICS members are not confident that new enquiries will convert into sales over the next few months.