House sales fall to less than one a week

The housing market has almost ground to a halt with surveyors reporting less than one sale per week.

The Royal Institute of Surveyors (RICS) said its members have reported a further drop in transactions to 11.5, the lowest figure since the survey began in 1978.

London is the worst hit region, RICS said, with estate agents reporting only eight sales on average over the past three months.

However, the balance of surveyors reporting house price falls rose for the first time since April.

RICS said 84.2 percent more chartered surveyors reported a fall than a rise in house prices, an increase from 81.8 per cent in August.

RICS spokesperson Jeremy Leaf said: "The recent turmoil in the financial markets has dented confidence further but yesterday's announcement by the government that the re-capitalisation of banks will be accompanied by increased lending to home owners, raises the possibility that the lack of mortgage finance that has so damaged the housing market might be eased.

"As it stands, only those with significant finances are in a position to access the market. The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come."

With the decline in house prices unlikely to abate in the near term and the likelihood of achieving a sale a distant memory, many are placing their property on the market for rent or sitting tight while the financial turmoil continues.

The market has still yet to experience significant numbers of forced sales but surveyors are surprisingly optimistic that sales will increase over the next three months. For the first time since June 2007, the net balance of surveyors expecting sales to improve turned positive.