Property sales slump to lowest level since 2009
Wednesday 14 September 2011
House sales dropped last month to their lowest level in more than two years, according to the Royal Institution of Chartered Surveyors.
Its August property figures showed that sales per surveyor over the three months to August fell to 14, a level last seen in June 2009. Surveyors blamed the "general economic uncertainty" for the sluggishness although a large proportion mentioned the lack of mortgage finance.
Official mortgage lending data published by the Financial Services Authority backed up that view. While new mortgage commitments in the second quarter of the year totalled £40bn, the figure was 3 per cent lower than the same quarter in 2010.
First-time buyers are still struggling to enter the market with the proportion of new loans combining a high loan-to-value and a high income multiple remaining at less than 1 per cent. Meanwhile the percentage of new loans at an LTV of more than 90 per cent is still below 2 per cent.
Fears over house price falls are deterring potential homeowners as well as putting people off selling homes, according to Rics. It said that many buyers and sellers are staying away from the market while they wait for things to improve.
Alan Collett, the housing spokesman at Rics said: "The risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available."
July figures from the Department for Communities and Local Government added to the gloom. Seasonally adjusted house prices fell 1.5 per cent year on year, although there was a 0.3 per cent rise month on month.
The average house price in July was £207,690. Prices paid by first-time buyers were 0.5 per cent lower than a year earlier while prices paid by former owner-occupiers fell by 1.9 per cent.
- 1 Dentist who illegally killed Cecil the lion blames local guides for the scandal
- 2 Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
- 3 Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
- 4 Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
- 5 Walter Palmer: American dentist revealed as the killer of Cecil the lion in Zimbabwe
Dentist who illegally killed Cecil the lion blames local guides for the scandal
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
Walter Palmer: American dentist revealed as the killer of Cecil the lion in Zimbabwe
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
The last thing Labour needs is a leader like Jeremy Corbyn who people want to vote for
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
iJobs Money & Business
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...
£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...
£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...
£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...