UK house sales at a 30-year low

The Royal Institution of Chartered Surveyors (Rics) said today that UK house sales have fallen to their lowest level for thirty years, as the restriction in lending has driven down prices for the 12th consecutive month, with agents selling just an average of 10.9 homes in the three months to October.

UK interest rates are now at their lowest since 1955, although the recent debacle with banks has meant that those savings have not been passed on to consumers quickly enough, although pressure from Prime Minister Gordon Brown has resulted in the banks conceding.

Ian Perry, a spokesman for Rics, said that the interest rate reduction will help the housing market, as it means that savings will be passed on to borrowers.

However, it is the general lack of mortgage availability that is the greatest stumbling block for the majority of buyers especially those looking for their first step on the property ladder, said Mr Perry.

The Council of Mortgage Lenders figures released today highlight the problem as only 35,000 loans for house purchases had been granted in September which is a fall of 6,000 from August.

Rics still retain their strong view that the UK housing market will not rebound in the short term and that is shared by homebuilder, Taylor Wimpey Plc, who today announced a 40 percent drop in orders.

Story link: UK house sales at a 30-year low