The institution said 10% of chartered surveyors reported price increases while around twice as many saw slight falls in prices.

This gave a net balance of minus 9% seeing rises over the period from a positive balance of 1% in September.

On the whole, RICS said prices were stable in the three months to October, with 58% of chartered surveyors seeing no movement at all.

South East leads downturn

Regionally, the picture remained constant.

London, the South East and East Anglia are leading the downturn in house price inflation in England and Wales.

The Midlands and the North have seen only limited price falls, with prices underpinned by demand for a dwindling stock of houses.

Buyers are more cautious, but RICS says this is only part of the story.

It says the outlook for prices will also be affected by the shortage of stock - the number of homes for sale per chartered surveyor fell to historic lows over the summer.

Housing market spokesman Ian Perry said: "The recent interest rate cuts amounting to 0.75% will have little immediate impact on the market in the face of waning confidence and gloomy predictions about the economy.

'Feel good factor' missing

"Some chartered surveyors reported a distinct lack of _feel good factor_ which is necessary for a buoyant market."

A fall in stock could help underpin prices

But he said there was some optimism that lower interest rates would eventually boost consumer confidence and lead to a more active market after the New Year.

And he said activity should be boosted by forthcoming government proposals for reforming the housing transaction system.

As part of the government_s taskforce, RICS has been helping find ways of shortening the length of time it takes to move from acceptance of an offer to exchange of contracts.