Continuing slump hits from all directions

The slump in the UK property market continued in August, with many agents selling less than one home per week averaged over the last three months.

The Royal Institution of Chartered Surveyors said sales were at their lowest levels since its monthly survey started in 1978.

In the three months to the end of August, the average agent sold 12.7 properties over the entire period, with transactions down 47% year on year.

Meanwhile, a lender’s prediction of a 25% fall in prices and no housing market recovery until 2010 has been read as a self-fulfilling prophecy by agents, who predict that as a result, buyers will continue to hold off.

Graham Beale, head of Nationwide, made the remarks in an interview on BBC, shortly before Redrow chairman, Alan Bowkett, said: 'It remains difficult to foresee how long the reduction in activity will continue, but it is our view there may be no meaningful increase in the availability of finance in the wider mortgage market before 2010.”

Redrow has just announced a pre-tax loss £193.9 million. Today, Wednesday, Barratt is due to announce its own results, while it has emerged that the Stamp Duty holiday aimed at first-time buyers is being cancelled by higher mortage arrangement fees.

Lenders are now asking first-timers to stump up around £3,000 in lending charges, designed to protect the lender should the property be repossessed and sold for less than is owed on the mortgage.