Property sales at lowest in 30 years

Tuesday 13th January 2009

Estate agents reported the lowest number of property sales in over 30 years in December.

The Royal Institution of Chartered Surveyors (Rics) reports its members recorded an average of 10.1 sales in the three months to December – less than one home sold a week.

This is the lowest level since Rics started recording sales in 1978.

Rics spokesperson Ian Perry said: "Buyer interest is now at levels not seen since 2006 but without mortgage finance the housing market is at a standstill and transaction levels at an all time low.

"First-time buyers and owner-occupiers are now stuck in a market which does not fulfil their aspirations."

However, Rics members were able to glean some positivity as the percentage reporting house price falls was down and buyer interest rose.

A total of 84 per cent of surveyors saw house prices fall in December and 16 per cent said they were steady – compared to 91 per cent seeing a fall in November and six per cent saying property values were steady.

However, confidence in the price outlook slipped back deeper into negative territory, reaching the lowest level since April 2008.

New buyer enquiries were up at the fastest pace since August 2006 with eight out of ten regions recording an increase in new buyer enquiries.

There was a marginal increase in the number of new homes coming onto the market.

Kevin Ryan, from Mayfair-based Carter Jonas, said: "Little activity has taken place in the last month.

"Most people seem to have given up all thoughts of buying until next spring at the earliest. The only serious enquiries are for properties above £5 million."

Fellow Rics member Christopher Shallice from Hix & Son in Lincolnshire, said: "Confidence in the housing market is extremely negative.

"The outlook for the early part of 2009 is extremely bleak."

Mr Perry called on the government to "act now to ensure that order is restored to the current chaos" to prevent a property collapse pushing the country deeper into recession.

"A first step would be to for the government to provide guarantees for the new issuance of residential mortgage backed securities," he said.

"Without this help there is a real danger that homebuyers will be frozen out of the market, transaction levels and prices will fall to new lows, repossessions will increase and negative equity will become common place."

Related News

<< Back To News Listings

News Article Search