The housing market in Scotland is expected to end on a "flat note" this year, with many surveyors expecting prices to decline even further in the next three months.

The Royal Institution of Chartered Surveyors (RICS) has published a report which shows conditions are far from improving in Scotland.

The amount of new homes being put on the market declined last month, despite the demand from new buyers remaining "stable".

Many sellers still have "unrealistic expectations", according to the report.

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A net balance of 29% more surveyors reported falls in prices rather than rises.

19% more surveyors in Scotland predicted prices would continue to decline over the next three months.

The report showed that 40% more respondents reported supply had declined than increased.

During September, 4% more surveyors predicted transactions would increase during the final quarter in 2012, down on the previous month's figure of 11%.

Sarah Speirs, director of RICS Scotland, said: "Prices are still dipping but at a much lower rate than seen in previous months.

"Despite this, problems still exist and more needs to be done to get the market moving. Unrealistic expectations on the part of vendors seem to be stalling the transaction process.

"Meanwhile, although the funding for lending scheme appears to be improving mortgage availability, those at the very bottom of the housing ladder are still struggling."

(IT)