'Less than one home a week sold'

8:30am Tuesday 14th October 2008

Estate agents are selling less than one property a week as prices continue to tumble, figures have showed.

The Royal Institution of Chartered Surveyors said its members had sold an average of just 11.5 homes during the three months to the end of September, the lowest level since its survey first began in 1978.

The situation is even more severe in London, where estate agents have made an average of just eight sales during the period.

At the same time, the number of surveyors reporting house price falls during September also increased for the first time since April.

Overall, 84.2% more chartered surveyors reported seeing further price slides during the month compared with those who saw price rises, compared with 81.8% more who reported falls in August.

The group said the lack of mortgage finance available was continuing to stifle the ability of buyers to access the market, but it added that yesterday's £37 billion rescue package for the banks, which includes a commitment by the banks to increase lending to homeowners, meant the situation could ease.

On a more positive note, the number of enquiries from new buyers improved for the fifth consecutive month to reach its highest level for 16 months, with only 17% more chartered surveyors reporting a fall than a rise, compared with 27% more who saw a fall in August.

The increase in demand was particularly marked in the South West, where demand was positive with 12% more surveyors reporting a rise than a fall - the highest level since May 2007.

RICS said sellers had been forced to drop their asking prices to more realistic levels, but despite this the percentage of their asking price that they achieved was continuing to fall.

It said cash rich investors were "waiting to pounce" on bargains to take advantage of the ever weakening market, particularly in the South West, where the house price boom has been driven by people buying second homes and holiday lets.

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