THE slowdown in the economy is reflected in a deteriorating housing market, according to a leading professional body.

A housing survey by the Royal Institution of Chartered Surveyors (RICS) has revealed an earlier than expected slowdown in the residential housing market.

Harvey Williams, housing spokesman for RICS in Worcestershire and the West Midlands, said the results "reliably confirmed there is an inextricable link between commerce, industry and the housing market".

"With the current economic climate and recent events in the US, it is no surprise that uncertainty is being felt in the run-up to Christmas, when the housing market traditionally slows down," said Mr Williams.

"The reported rise in unemployment is having a knock-on effect on consumer confidence across the region and the whole of the UK."

Mr Williams said the figures showed the number of housing deals done across the region was 15 per cent lower than in the same period last year

He said this was due in part to companies in the area, notably air transport-related and manufacturing companies, reporting major job losses in the last month.

"These announcements are spreading nervousness from within industry onto the consumer, as component suppliers within these sectors are also being affected," he said.

Surprisingly, prices were holding up.

"Against this backdrop, however, house prices have held up remarkably well during the past month, even after September 11," he added.

"Reports from Worcestershire surveyors indicate that first-time buyers remain active, with enquiries across the board surprisingly high in September and October.

"The middle to top-end of the market, however, is now very patchy and becoming more price sensitive.

"The drop in the number of housing deals will inevitably have an impact on prices for the remainder of 2001."

Country-wide, the market is expected to continue its slowdown.

Mr Williams said RICS, which has 7,000 members in the West Midlands, would continue to watch employment statistics and interest rates before "gazing into its crystal ball" for longer-term predictions.

"The jury is still out on the depth of this slowdown," said Mr Williams.

"But we are already seeing tangible signs through the housing market figures, which will continue to reflect any weakening in our economy."