RICS: House sales hit 26-month low

Only fourteen homes were sold per UK estate agent in the three months to August - the lowest total for more than two years, said the Royal Institute of Chartered Surveyors (RICS).

According to its latest housing market survey, more surveyors reported price falls than price rises in August, with 78% citing economic uncertainty as the reason for the slump and 66% blaming a lack of mortgage lending for the sluggish housing market.

Regionally, 74% of surveyors in London cited lack of stock as a reason for the subdued housing market. However, in Northern Ireland where price falls have been particularly severe, fear of further declines was the most cited factor.

New buyer enquiries fell back in August as 3% more surveyors reported a decrease rather than an increase. Meanwhile, new instructions, which indicate supply levels to the market, moved from a net balance of -8% to 0%.

However, sales expectations remain positive for the coming months with 17% of surveyors hopeful of a modest pickup in activity.

RICS housing spokesperson Alan Collett said: “For the time being, our indicators suggest that demand for homes remain broadly steady, albeit at relatively low levels, despite the renewed bout of economic gloom.

“However, the risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available.”