The research showed that newly agreed sales declined at their fastest rate since April 1999, whilst net price balance is currently at the most negative level since May 2005
Scotland escaped the worst, but prices fell in England, Wales and Northern Ireland.
"It is clear that the housing market continues to feel the strain of depressed market conditions," said Jeremy Leaf of RICS. "The recent credit crunch continues to hit confidence in the market. However, while underlying economic fundamentals remain sound and the labour market remains strong, large falls in prices remain unlikely."
James Buxton, a RICS member based at Bidwells in Cambridge said it had been a year of two halves: "There has been a 30 per cent increase in new instructions and sales in the first seven months of the year, and a complete reversal in the second half. The shortage of good quality properties is helping to 'underpin' prices.
"There are certainly fewer buyers around at the present time but they are generally of a higher quality than earlier in the year and ready to commit to the right property at the right price."
