moneysupermarket.com: RICS May housing figures

Commenting on the RICS figures, Louise Cuming, head of mortgages at comparison site moneysupermarket.com, said: "The RICS figures show house prices are going down - but this isn't showing the full picture for home owners. While house prices are dropping, anyone with a less than spotless credit record or small deposit will find getting a mortgage deal at an affordable price near impossible.

"Consumer confidence is plummeting, driven by inflation and evidenced by the increase in their shopping bills and rising fuel costs. As a result, people are taking a wait and see approach until their finances seem stronger and house prices have dropped even further. Until inflation goes down and people can stop worrying about the rising cost of living we won't see much movement in the housing market.

"However, mortgage providers should be supportive to those that do still want to move up the housing ladder. Providers must loosen the purse strings and take a balanced risk approach to their lending or face further stagnating the market."