House sales fall to 30-year low

Industry bodies are calling on the government to do more to improve prospects in the housing market, after it was revealed that house sales have fallen to the lowest level in 30 years.

According to the Royal Institution of Chartered Surveyors (Rics), sales in the three months to July were at the worst level in three decades. Estate agents are averaging just one house sale per week.

Figures released by Hometrack show that August was the eleventh consecutive month to see a fall in house prices, as banks continue to tighten lending conditions.

Rics have said that the government needs to take “significant and decisive action” if house prices and sales are to improve.

The plan put forward by Rics would see the government establish a tax-free savings account to help first-time buyers save a deposit.

Gillian Charlesworth, spokeswoman for Rics, said: “We need a joined-up, comprehensive approach to bring back confidence and give the public clarity about what is available. While we wait for the government to act, many home owners are trapped in a market offering little or no mobility without the prospect of good cheer in the autumn.”

At the same time as figures were released by Rics and Hometrack, The British Bankers’ Association said that mortgage approvals have fallen by 65% in the past year. Only 22,448 mortgages were approved in July, compared to 64,184 twelve months ago.

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