Sellers retreat from housing market

The number of people putting their homes up for sale fell in September, according to the latest Rics UK Housing Market survey. The number of new instructions fell over the month.

Around 5 per cent more surveyors reported that the supply of property fell, rather than rose. The survey also indicated that house prices continued to decline, with 23 per cent more surveyors reporting prices falling than rising over the last three months.

The survey respondents ascribed the decline in new housing supply to potential vendors' fears over the economic outlook, with many people afraid of finding out that their home is worth less than they previously believed.

Though new buyer inquiries increased during September, the surveyors questioned noted that the large deposits required by lenders continue to shut many prospective first-time buyers out of the housing market.