Concerns that the housing market is slowing down have been fuelled by figures showing the number of chartered surveyors reporting house price falls has reached levels last seen during the early 1990s house price crash.

In all, 49.1% more chartered surveyors said house prices fell during December than those who reported a rise, which is the highest figure since November 1992, according to the Royal Institution of Chartered Surveyors (Rics).

And the group said that demand for properties also remained subdued. A total of 25% more surveyors reported a fall in the number of people looking to purchase a new house compared with those who saw an increase, while sales fell for the seventh consecutive month.

Rics said that some people had been prevented from moving in December after mortgage lenders opted to tighten their lending criteria as a result of the global credit crunch.

However, it added that any further cuts in interest rates could help to stabilise the situation.

Even so, the survey shows that surveyors' confidence in house prices and sales going forward has reached its lowest level since October 1998 when the group first included the question in its study.

Experts believe that the figures show that the predicted housing market slowdown is under way, with most house price indexes reporting monthly property price falls, while the number of mortgages being approved also fell to a three year low in November.

Rics spokesman Ian Perry said: "The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007.

"While sentiment seems to have reached its lowest ebb, the underlying economic conditions are vastly different to what the country experienced in the early 1990s.

"Supply would have to loosen considerably before prices experience a significant dip."

However, he stressed that the next few months will be of "great importance" to the market, as many potential buyers will wait to see if the Bank of England cuts interest rates again.

He said: "The Bank of England may have to cut rates further if the market is to remain in a stable condition."

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