House price inflation slowing

House buying activity slumped after the terrorist attacks

House-price inflation in England and Wales slowed to a five-month low last month according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).

People were reluctant to go house hunting in the immediate aftermath of the terrorist attacks in the US, and RICS says the housing market may not recover until next year.

"We originally forecast a downturn for the housing market in the autumn because of the expected slowdown in the economy, coupled with recovery in the early part of 2002," said Ian Perry, the national housing spokesman for RICS.

"We can now expect to see that recovery delayed until the spring or possibly the summer of next year."

Terrorist impact

The RICS survey found the difference between chartered surveyors reporting price increases and price falls fell to 38% in September, down from 49% the previous month.

That was the lowest level since April this year.

RICS said the number of enquiries from buyers "fell away sharply" in the days following 11 September, but that business began to pick up again towards the end of the month.

The survey found prices slowing at a greater rate in the south of England, while it said prices in the Midland and the North were holding up well.