House sales continue to fall

Posted: 11 Nov 2008 12:19:39 GMT

The number of properties sold in October continued to fall, a new report has revealed.

According to the latest housing market survey from the Royal Institute of Chartered Surveyors (Rics), the average number of sales completed per agency over the last three months was 10.9.

This is the lowest the figure has been since records began in 1978. The survey also showed that almost 82 per cent of surveyors have indicated a fall in house prices.

London suffered the lowest number of transactions with only six completed per agency in the three months from August to October.

The north-east experienced a better level of sales, with 16 completed in the same period.

Ian Perry, Rics spokesperson, suggested that the Bank of England's decision to cut interest rates by 1.5 per cent last week should help to get the market moving.

He commented: "Many vendors have finally started to accept current market conditions and are dropping their asking prices to achieve a sale. Sales should increase in the coming months as more and more sellers understand that greater realism is the only way to make that long desired move."

Of the chartered surveyors questioned for the survey, 20 per cent said that they were becoming more confident that business will improve in the next few months.

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