Home Sales Slump to Thirty Year Low

The Royal Institute of Chartered Surveyors (RICS) announced that sales were at their lowest level since its monthly survey began in 1978. The slump in the UK property market continued in August, with some estate agents selling only one property per week during the last three months.

Mortgage shortage

A shortage of mortgages is the critical factor which is preventing the housing market from recovering. RICS warned that the Government’s stamp duty freeze would not be enough to kick start house sales.

The past 12 months have seen an unprecedented collapse in property sales and prices since the housing market, both in the UK and the US, was hit by the credit crunch. Fallout from the crisis has affected global property markets, with house prices falling sharply in many other countries.

On a brighter note, 10 of the largest mortgage lenders in the UK have cut the cost of their two or three year fixed rate deals in the past two weeks.