Estate agents predict worse to come as property sales fall to lowest level

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by Kay Murchie

Figures published today by the Royal Institution of Chartered Surveyors (Rics) have revealed that property sales fell even further in December to their lowest level since records began over thirty years ago.

According to Rics, the number of sales per estate agency fell during the last quarter of 2008 to 10.1, down from the 10.6 sales per agency reported a month earlier.

The gloomy figures have led estate agents to predict there is worse to come.

In London, estate agents are experiencing a tough time, selling an average of just seven properties in the last quarter of 2008, while agents in the South East and South West were averaging nine sales.

However, estate agents fared better in the East Midlands selling an average of 15 homes in the same period.

For the second month in a row, Rics said new buyer enquiries rose, primarily due to lower interest rates and falling house prices.

However, recent reports show that mortgages continue to be in short supply, meaning first-time buyers are unable to secure a mortgage without a hefty deposit.

Meanwhile, Rics said the ratio of completed sales to unsold property – ‘a lead indicator of future price changes’ - fell to 12.9% from 13.6% - the lowest level in 16 years.

A spokesperson for Rics said buyer interest is now at levels not seen since 2006 and a lack of mortgage finance means the housing market is grinding to a halt.

Many reports are predicting further falls in property prices this year so some would-be buyers are reluctant to purchase a property in the wake of this news.

The news comes on the same day the British Chambers of Commerce (BCC) painted a bleak outlook for the UK economy.

The BCC believes that the economic downturn is deepening at an alarming rate and the UK is facing a very serious recession.