Housing transactions down again

The number of housing transactions has fallen again, providing more evidence that the property market is still in decline.

Figures from the Royal Institution of Chartered Surveyors (Rics) showed that the average number of transactions per surveyor last month was just 15.3, the lowest it has ever recorded.

Prices are still coming down, with 88 per cent more surveyors reporting a fall in prices than a rise, while 35 per cent more said the number of buyer enquiries was down than reported an increase.

Commenting on the low number of transactions, Rics spokesman Jeremy Leaf blamed the state of the mortgage market, saying: "Transaction levels remain incredibly low with many buyers cut out of the process by tight lending conditions."

This situation may prompt some looking to get on the housing ladder to opt for self build instead.

Last week the Council of Mortgage Lenders said that the number of home loans taken out by first-time buyers in May this year was 41 per cent less than 12 months before.