UK house prices have fallen for the first time since October 2005, according to new research by the Royal Institution of Chartered Surveyors (Rics).

In news that may be of interest to those seeking to purchase a new home, the number of estate agents reporting price declines outnumbered those who informed of increases by 1.8 percentage points.

Rics spokesperson Ian Perry stated that potential house-buyers have become increasingly cautious as they wait to see what effect interest rate rises will have on household finances.

There have been five interest rate hikes by the Bank of England since August 2006.

"Affordability is at its most stretched in over a decade and many will worry that rising mortgage repayments will prove a step too far. The market will soften further going into the autumn," Mr Perry added.

Recent research on financial indicators by the Bank of Scotland suggested that Scottish economic growth is expected to pick up in 2008.