HOUSE prices in the South East have fallen for the first time in a year, according to the latest report by the Royal Institution of Chartered Surveyors (RICS).

National housing market figures for the three months to July indicate price rises have slowed following a nine-month period of strong inflation, but an increasing number of surveyors reported a fall in the South East.

Prices are expected to continue to fall at a modest rate for the next three months.

RICS have cited back-to-back interest rate rises as the reason for a significant drop in the number of people looking to buy. First-time buyer enquiries and the number of houses coming onto the market have also fallen in the last quarter.

Trevor Hines, RICS South East director, said: “Unlike last year, the supply of new property coming to the market has remained low and kept market conditions fairly tight, which is a major factor underpinning prices.

“This is a traditionally quiet time of year but still buyers and sellers are showing a noticeable air of caution.

“The latest indication from the Bank of England is that interest rates are unlikely to increase substantially from now until the end of the year.

“When the market cools it provides a great opportunity for first-time buyers. We expect a steady demand for property as we go into the autumn but only on those that are correctly priced.”