UK house prices 'hit by interest fear'

British house prices continued to drop in January, according to a key industry survey, as demand was dampened by fears that an interest rate hike was looking more imminent.

A balance of 7% of surveyors reported a decline in new buyer inquiries last month, the Royal Institution of Chartered Surveyors (RICS) said, as speculation mounted over when the Bank of England would opt to lift historically low interest rates from 0.5%.