Fears over the health of the UK economy and a lack of available mortgage finance meant that the expected spring boost in the residential market failed to materialise, it has been suggested.
The latest report from the Royal Institution of Chartered Surveyors (Rics) found that transaction and activity levels in the country remained depressed in May, with only five per cent of surveyors reporting an increase in sales compared to the previous month.
Completed sales per surveyor also fell by 3.4 per cent in the three months to May, to just 14.7, the lowest level since January.
House prices, meanwhile, 28 per cent more surveyors reported price falls rather than rises, the lowest reading since the beginning of the year. However, of those respondents seeing falling prices, the vast proportion, 82 per cent, reported declines within the zero to two per cent margin.
"Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon," said Rics housing spokesperson, Ian Perry.
"Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand."