Chartered surveyors have reported a collapse in housing transactions, with the average number of sales per surveyor falling from 18.5 to 17.4 over the past three months.
The figure marks the lowest number of transactions over a three month period since 1978, when the Royal Institution of Chartered Surveyors (RICS) began its survey of the housing market.
RICS also found the balance of surveyors reporting new buyer enquiries remains in negative territory.
An estimated 51% more surveyors reported a fall in buyer enquiries during the three months leading up to June 2008.
The balance of surveyors reporting house price falls decreased slightly in May, with 92.9% more surveyors reporting a fall than a rise in house prices, marking a decrease from 94.7% in April.
The figures, however, continue to show depressed house prices and a decreasing level of sales activity.
RICS spokesperson Jeremy Leaf says weakened demand and fewer housing transactions continue to pose a very real danger to the wider economy.
“The property industry will not be the only casualty in the fall out from the credit crunch, with the high street and purveyors of a range of household goods, including furniture and white goods also feeling the pinch,” he says.
“Construction workers such as plumbers and bricklayers will start to see employment opportunities dry up as the pace of housing transactions continues to abate.”IFAonline
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