Prices are likely to fall further due to a shortage of buyers, Rics suggests House prices are still under downward pressure as sellers continue to outnumber potential buyers.
The Royal Institution of Chartered Surveyors (Rics) said 44% of its members saw prices fall in the past three months.
Only 6% reported that prices rose, while 50% said they had been stable.
The figures highlight the picture painted by other recent surveys, which have shown prices drifting down in recent months.
Rics spokesperson Ian Perry said it was “very much” a buyers’ market.
“First-time buyers are in particularly short supply as the high deposits required by lenders prevent them from taking their first steps on the property ladder,” he said.
“Without sufficient demand, property prices continue to slip back.
“However, many areas are reporting a correction, rather than dramatic falls in prices, and vendors who are prepared to be realistic with pricing are still able to achieve a sale,” he added.
The Rics survey covered only 265 members who work as estate agents.
“Our main problem is client expectation, with a large number of vendors in denial and very reluctant to reduce guide prices”
Carl Eastwood Ipswich
But the survey traditionally has its finger on the pulse of the market.
Several respondents fingered the forthcoming cuts in public spending for undermining the confidence of potential buyers.
“The overall trend is edging towards reductions in property prices, as buyers become increasingly nervous of the economic climate,” said Edward Waterson of Carter Jonas in York.
Derek Coates of Venmore in Liverpool was more forthright.
“Government austerity measures coupled with fears of unemployment and a genuine fear that house prices may well fall further is stifling the market,” he said.
Peter May of Minster Property in Wimborne said the market had acted as if a tap had been turned off.
“The general talk of cuts in government spending appears to have caused the fragile confidence in the property market to be shattered and this very much looks like we are heading for a double dip in the housing market,” he said.
Other surveyors pointed to the continued effect of widespread mortgage rationing by lenders.
“The real problem in the market is first-time buyers’ inability to obtain mortgages, thus putting a brake on their ambitions to own property,” said Stuart Allan of Broadley & Coulson in Bishop Auckland.
Carl Eastwood from Ipswich highlighted cited a traditional obstacle to quick sales.
“Our main problem is client expectation, with a large number of vendors in denial and very reluctant to reduce guide prices,” he said.
The availability of land is a key factor in changes to house prices, separate work by researchers at the London School of Economics has found.
Those saving up to buy a house in areas where residential developments were restricted needed larger down-payments relative to their income, the report said.
These people ended up having to save up for longer and bought a home later in life. They might also face higher rental prices in the meantime.
“The research illustrates how constraints on the supply of land can have major implications for household welfare through their effect on house prices and individual home ownership,” said Dr Alex Michaelides, who led the research.
The report suggested that relaxing borrowing restraints added to ownership levels, but had little impact on house prices.
The work was funded by the Economic and Social Research Council, which is primarily funded by the Department for Business.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.