RICS national housing spokesman, Ian Perry, says, "Fears of recession have been present for some time but continued employment growth, falling mortgage rates and firm wage rises have all helped sustain the housing market.'

Demand for property is still outstripping supply, which alleviates fears of a slump in the residential sector like that seen during the early 1990s when a flood of property hit the market far outweighing demand. High interest rates on money advanced on a glut of homes soon saw the property market spiral into a recesion it took over six years to emerge from.

Chartered surveyors are becoming encreasingly concerned about the prospects for the housing market later this year as economic conditions weaken. Only 3% of RICS members expect sales to rise by the end of 2001.

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