DON'T gamble on large falls in house prices, the Royal Institute of Chartered Surveyors has warned.

UK house prices are declining at their fastest rate since 1995 after three interest rates rises in six months - negating the need for further hikes, said RICS.

But any falls in areas of the South have been merely "moderate".

RICS national housing spokes-person Ian Perry said: "While consumers keep confidence in job security and the economy we don't expect large price falls."

But he added: "The Bank of England is getting what it wanted. The housing market is slowing down with the economy, after consistent interest rate rises over the past year.

"The medicine is working. The slowdown is desirable from the point of view of market sustainability and may mean that further rate rises are unnecessary for the time being."

Numbers of available properties across the UK are at the highest recorded level for almost a year, rising by eight per cent over the past three months.

Almost a third more chartered surveyors reported a fall than a rise in house prices over the three months to September.

Yesterday the National Association of Estate Agents said the average property price in the UK had fallen for the fourth consecutive month.

NAEA figures suggested house prices were on average 1.6 per cent lower than the previous month, with the annual increase down to 7.95 per cent - its lowest level so far this year.

However, prices are still historically high and unachievable for many looking to get on to the property ladder - the percentage of first-time buyers fell yet again to just 8.9 per cent last month.

NAEA president Richard Hair said: "The market is clearly now showing signs of the correction that we have been predicting all year.

"This month's reports from the estate agents at the front line reveal that prices are indeed continuing to fall slightly and buyers are adopting a 'wait and see' attitude.

"Nevertheless there are plenty of new instructions and - providing vendors are realistic in their asking prices - we should see the buyers start to move for these homes once they realise that a crash is a very unlikely prospect."

First published: October 19