Housing demand falls further

Tuesday, 9 September 2008 12:00 AM

Housing transaction levels have fallen to their lowest yet, according to the Royal Institution of Chartered Surveyors (Rics).

Over the last three months, the average number of transactions per surveyor has fallen to 12.7, the lowest figure since the property survey began.

Rics has blamed the lack of mortgage finance available for the low figures and is calling for the government to inject cash into the market.

Some chartered surveyor estate agents in a number of regions have been reporting less than one sale per week, Rics said.

New buyer enquiries fell slightly, with 28 per cent more chartered surveyors seeing a fall than a rise compared to 27 per cent in July, in a traditionally weak month, the group said.

However, Rics said 81 per cent percent more chartered surveyors reported a fall than a rise in house prices, a decrease from 83.1 percent in July.

Rics spokesperson Jeremy Leaf said: "A lack of mortgage liquidity is the key issue which is keeping the housing market from showing any real sign of recovery.

"While money is scarce, many will continue to be denied the next step on the property ladder. The government's stamp duty policy will not be enough kick start transactions and is more likely to assist buy-to-let investors with better access to finance than the first-time buyers it was aimed at.

"More needs to be done to reinvigorate a market whose confidence has taken a severe knock."

The government recently announced a package of measures to help the ailing property market, including raising the stamp duty threshold to £175,000 for a year.

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• uk property news