Bounty

The average value of property fell for the first time in a year during July, the Royal Institution of Chartered Surveyors has reported.

An additional 8% of the group's members said they experienced price declines, compared with those reporting increases, in what is the first reported fall since July last year.

More sellers than buyers are in the market, with a second consecutive monthly reduction in the number of people looking to buy.

The institution's survey for July also showed that average property values will fall still further, with 28% more surveyors saying they expect prices to fall in the next few months. June's survey only showed an additional 6% of professionals forecasting declines.

However the same survey also showed an additional 8% of surveyors believe the number of property transactions will increase in the near future.

The drop in average prices is "a reflection of both the increase in supply following the scrapping of Home Information Packs and the more cautious stance from buyers", according to spokesman Ian Perry.

Copyright Press Association 2010