The housing market across England and Wales is continuing to cool, the RICS said this morning.

Only 2% of its estate agency members are expecting prices to rise over the next three month although there is more optimism on transaction levels, which 48% expect to increase.

The RICS said that in London, market conditions “continue to deteriorate with prices, buyer inquiries and sales falling”.

It also said that the rental market is continuing to rise, with a further increase in tenant demand and a dip in supply.

The RICS said that both Scotland and Northern Ireland’s housing markets out-performed the rest of the UK.

Separately, two reports from national valuation firms, Connells and e.surv, give differing pictures of the housing market at the start of the year – but are agreed that there have been substantial annual falls.

According to e.surv, January saw the fastest monthly increase in house purchase lending for five years, since April 2009.

House purchase approvals bounced up 9.1% compared with December, while there were 1,700 more first-time buyers.

Based on its own valuation activity, e.surv is forecasting 65,778 house purchase approvals in January, up from 60,275 in December, but nearly 10,000 fewer than the 75,557 mortgage approvals in January last year.

According to the far gloomier Connells Survey & Valuation, January was “subdued” with a 4% monthly fall in activity.

Only buy-to-let showed real signs of life, with BTL valuations up 37%.

Although first-time buying activity picked up, according to Connells,  the monthly increase in valuations for first-time buyers was just 3%, but down 28% compared with January last year.

Strangely, the news of e.surv’s joyous January and Connells’ down-in-the-dumps month came via the same public relations firm.

A spokesperson tells us that it is because Connells do not adjust figures, whereas e.surv does. Which probably says something about our old friend, Seasonal Adjustment.

Over to you, Eye readers. Has it been a good start to the year where you are or a lacklustre one?