The super wealthy continue to splash out on arts and antiques despite the deepening economic gloom.

The art market as a whole was flat in the three months to June. However, prices for lots worth more than £50,000 were buoyant as international buyers, particularly from Russia and the Middle East, continued to seek an alternative to stocks and shares, according to the latest arts and antiques survey from the Royal Institution of Chartered Surveyors (RICS).

Contemporary art was the best performing sector for the second quarter running, with 48 per cent more surveyors reporting a rise rather than a fall in prices. Activity was strongest at the top end of the market, where Lucian Freud’s ‘Benefits supervisor sleeping’ sold for £17.2m and Banksy’s ‘Laugh now but one day we will be in charge’ sold for £100,000.

Oil and watercolours did not perform as well, with 9 per cent more surveyors reporting a fall than a rise in prices. However, values at the top end, where Monet’s ‘Le basin aux nympeas’ went for £41m, bucked the trend.

RICS spokesman Jeremy Lamond, said: “Investors at the top end of the market see arts and antiques as an alternative investment in this uncertain economic climate. The credit crunch has bolstered the sale price of more expensive items but has depressed the lower end of the market where liquidity is extremely tight.”

The worst-performing sector in the survey was furniture, where 20 per cent more surveyors reported a fall rather than a rise. Again, however, quality pieces such as those from Lord Sainbury’s private collection, were able to buck the trend.

Prices also fell for ceramics and clocks while books, silver and jewellery all rose.

Surveyors have also turned negative on the outlook for the market as a whole, despite the continuing interest of international buyers. Valuers expect the number of lots to decline over the next three months as the slowdown in the housing market leads to a drop-off in house clearance sales.

Lamond said: “The cost of living is on the increase making the purchase of antiques a luxury few can afford. The situation is unlikely to improve in the near term but as long as well-heeled investors remain the market will continue to feel supported.”

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