House-buying crisis acknowledged

Two bodies involved in the home-buying industry have acknowledged the market is in a rough patch following the publication this week of Nationwide's house price figures for May.

Following the revelation that prices fell 2.5 per cent this month, National Association of Estate Agents chief executive Peter Bolton King admitted: "There is no denying that the credit crunch and tighter economic factors have affected confidence in the market."

The Royal Institution of Chartered Surveyors said the situation was making it so hard for some to access mortgages that transactions could fall by as much as 40 per cent.

Senior economist David Stubbs predicted that "The market will only stabilise once transaction volumes recover."

Those keen on acquiring a home but feeling deterred by the state of the current housing scene may wish to consider looking at self build as an alternative.