The pound hit 13-month low against the euro on Thursday as weak house price data sparked fears that sterling might be on the verge of a sharper downturn against the single currency.

The Royal Institute of Chartered Surveyors house price balance slumped sharply in the three months to August, from a downwardly revised July reading of 10.8 per cent to -1.8 per cent, its lowest reading since October 2005.