source: RICS
Lack of finance is fuelling further falls in market activity, according to the latest report from RICS (Royal Institution of Chartered Surveyors).
Completed property sales for the quarter to September fell to 11.5 per surveyor from 12.7 in August.
This was -51.5 per cent down on year ago levels, compared to August's annual fall of -47.4 per cent.
London recorded the lowest activity levels of any region with an average 8.3 sales per surveyor over the quarter.
More Price Declines
House price declines also became more widespread over September, as the balance of surveyors reporting falling rather than rising prices intensified to -84.2 per cent from -81.8 per cent the previous month.
Falling house prices became more apparent in London, Wales, the North, the North West and the East Midlands.
However, there were modest improvements in East Anglia, the South West and the West Midlands.
RICS suggests that repossessed properties are driving price declines, while noting that the number of new instructions fell by -1.1 per cent over September.
They also suggest that the lack of new properties can, in part, be explained by vendors who are opting to let out their homes while market conditions remain unfavourable.
Outlook Mixed
Nevertheless, the ratio of sales compared to stock of unsold property continued to deteriorate over September, dropping to 14.1 per cent from 15.4 per cent in August.
However, sales expectations did turn positive for the first time since February, taking them to their most buoyant level since June 2007.
Unfortunately this was not reflected in the price outlook, which dipped again over the month, although remains more upbeat compared to the year's low point in April.
Commenting on the figures, 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."
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