Housing market still weak in August

9 September 2008

The UK housing market remained weak during the month of August, according to a new report from the Royal Institution of Chartered Surveyors (Rics).

About 81 per cent more chartered surveyors said they recorded a fall in house prices than a rise last month, down slightly from July`s figure of 83.1 per cent.

Meanwhile, the average number of transactions reported per surveyor dropped to its lowest level since the beginning of the survey, at 12.7 in a three-month period - just over one sale a week.

This was primarily due to the ongoing problem of high numbers of homebuyers being refused a loan for house purchase, Rics said.

Rics also noted that those struggling to sell their homes due to their inability to obtain a mortgage are resorting to letting their properties until the market picks up again.

Jeremy Leaf, spokesperson for Rics, commented: "A lack of mortgage liquidity is the key issue which is keeping the housing market from showing any real sign of recovery."

Earlier this month, the organisation warned that new government proposals to help the housing market to recover more quickly will offer little respite for struggling buyers.

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