Mortgage finance shortage sees transactions fall

The Royal Institution of Chartered Surveyors (Rics) has reported the lowest monthly figure of transactions per surveyor ever.

Rics said that in July the average number of moves completed per member was just 14.4 each, something it blames on the lack of mortgagefinance available to would-be buyers.

Spokesman Ian Perry commented: "The lack of mortgagefinance has brought the housing market to a virtual standstill with first-time buyers rapidly becoming an endangered species."

Mr Perry added that there have been some signs of recovery but argued that the uncertainty over the government's stamp duty policy risks preventing this from occurring as potential buyers sit tight and wait to see what chancellor Alistair Darling will do.

The mortgagefinance situation has also been noticed by the managing director of estate agency Your Move, David Newnes, who said it "hasn't been this hard to come by for 15 years".

Would-be homeowners frustrated in their attempts to buy a home for this reason may opt for the self build method as an alternative.