The contemporary arts sector has seen a fall in prices as the global economic downturn takes yet another victim.

In the fourth quarter of 2008, 41 per cent more surveyors reported a fall rather than a rise in prices, according to the Royal Institution of Chartered Surveyors’ (Rics) arts and antiques survey published today.

The fourth quarter of the year is traditionally the busiest in auction rooms. However, last year the ‘all lots’ balance fell to new lows in the £5,000 – £50,000 and £50,000 plus tiers, with 22 per cent and 23 per cent more surveyors reporting a fall rather than a rise.

The top end of the arts and antiques market, particularly the contemporary art sector, had remained consistently strong in recent years despite economic problems.

However, Rics suggest the recent high volume of jobs losses in the financial sector is now having an impact.

The lack of movement in the housing market is also leading to a decline in the number of goods being offered at auction, which continues to affect the lower and middle tiers of the market, a statement released today states.

Rics spokesman, Chris Ewbank adds: “The difficult financial situation is affecting all parts of the economy and the art and antiques industry is no exception, although the downturn has not been nearly as dramatic as in other areas of the economy. The contemporary art sector has soared over the past few years and we are now in the midst of a correction.

“The slowdown in the amount of goods offered at auction is reflective of the lack of activity in the housing market. However, as prices and sellers become more realistic, savvy investors will look to lower priced goods from ‘traditional’ sectors such as antique furniture.

“Investors will continue to become more selective in their purchases as buyers look to the industry as an alternative source of investment.”