Sentiment amongst local chartered surveyors remained low according to the study, in line with the UK-wide picture.

A net balance of 84 per of Northern Ireland contributors to the RICS June survey were reporting falling rather than rising prices, compared to a UK-wide net balance of 88 per cent reporting falling rather than rising prices. In May, the Northern Ireland price balance was -80 and -84 in April.

RICS Northern Ireland housing spokesman, Tom McClelland, said: “The housing market continues to experience an extremely low volume of sales activity despite asking prices having been cut aggressively in recent months.

“Negative news flow is discouraging interest in the market, which is forcing sellers to cut asking prices further and some economists are suggesting that prices could therefore overshoot on the way down, having overshot on the way up in recent years.”

Ulster Bank Head of Mortgages, Derek Wilson added: “Purchase activity is low while people watch movements in the market closely.

“Those coming to the end of a mortgage deal or intending to remortgage should fully investigate the options open to them and speak to their lender if they have any concerns.”

Across the UK, the average number of transactions reported by chartered surveyors is at its lowest since the RICS housing survey began in 1978.

Demand is weak with chartered surveyors reporting buyer enquiries continuing to fall.

Commenting on the UK-wide picture, RICS spokesman Jeremy Leaf said that there were opportunities for some would-be buyers when the market is weak:

“With demand so low, would-be buyers are negotiating from a position of strength. Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains."

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues.

RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.

RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).