House sales lowest for thirty years

Figures from the Royal Institute of Chartered Surveyors report a fall in house sales to the lowest level for the last 30 years. The continuing difficulties in the mortgage market have resulted in average sales per estate agent of just fifteen, in the three months up to the end of June. This is some forty percent lower than this time last year and the lowest recorded figure since RICS began keeping records in the late seventies.

RICS go on to say that house prices are falling as sellers are forced to slash prices to attract buyers, and eighty eight percent of surveyors reported that prices were falling rather than rising.

However, which this agrees with the price index reports coming from both the Nationwide and HBoS, it is contrary to the much more comprehensive reports produced by the Land Registry and others who use all sales, and not just mortgage assisted sales as their data source.

Anecdotal evidence suggests that whilst prices are being slashed in some instances, this is only where the sale of the property is the only viable option. Reports from estate agents suggest that property which is not selling within a reasonable margin of asking price, is either being withdrawn from the market or offered for rent. Reports from rental agencies suggest that the average void period between tenants has fallen to around two weeks would seem to support this view.

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