HOUSE prices in Worcestershire are continuing to fall and even the traditional spring property surge could be tempered by caution this year.

According to the Royal Institute of Chartered Surveyors almost 80 per cent of chartered surveyors in the county reported a fall in house prices in December, up from 77 per cent in November.

A further 16 per cent said prices had remained the same and only five percent reported an increase in prices, up two per cent from November.

Buyer enquiries in the region fell for the seventh consecutive month in December and at a sharper rate than during the previous month.

New instructions also continued to decline, however the pace of this fall has slowed.

This slowdown can be partly attributed to the recent extension of HIPS to all properties, as some homeowners attempted to avoid the cost of a HIP by marketing their properties before the deadline. RICS West Midlands spokesperson Charles Robinson, of Griffiths and Charles in Worcester, said: "Once again the housing market in Worcester saw a slowdown during December, with activity and new properties coming on to the market in lower numbers than usual.

"The new year is usually a good indicator of the how the market will perform, however this January potential buyers are playing a waiting game as they weigh up influences such as potential interest rate cuts, inflations and market condition before making any moves".Richard Franklin, RICS' West Midlands spokesperson and divisional development director at Persimmon Homes, added: "Last year's housing market was marked by an abnormally high number of properties for sale, a number of which were trying to avoid the introduction of home information packs. This sudden increase began in the spring but did not wash through the market until December and the expansion of HIPs to all property types.

"Looking forward in 2008, inflationary pressures on essentials, such as fuel and power, may limit the number of aspirational buyers looking to move up the property ladder, but the much anticipated interest rate cuts could encourage more lending."