Rics: Transactions at 30-year low

Date:Tuesday 14th October 2008
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The state of the mortgage market has been manifest in new data from the Royal Institution of Chartered Surveyors (Rics).

On average, the number of transactions per surveyor went below one per week in September.

This is the lowest figure since the survey started in 1978.

The number of surveyors reporting falls in house prices increased for the first time since April, with 84.2 per cent more saying there had been a drop rather than an increase.

On average, each surveyor had 11.5 transactions over the last three months, with those in London reported the fewest at just eight.

Rics spokesperson Jeremy Leaf said financial volatility had affected confidence but predicted the government recapitalisation of banks would lead to more lending to home owners.

"As it stands, only those with significant finances are in a position to access the market," he said.

At the beginning of October, Rics said it was not surprised by falling house prices and said further price falls are likely in the coming months.

It cited increases in mortgage rates and tightened lending criteria as evidence of future price drops.