Government figures have revealed a slump in residential property sales.
The number of homes sold in the UK has dropped 53 percent in the last 12 months, according to figures released by HM Revenue & Customs (HMRC). They reveal that just 59,000 residential properties were sold in September, compared to 126,000 during the same month last year.
Tighter credit conditions have been blamed for the slump, with potential buyers finding it increasingly difficult to secure the mortgage finance they need. Figures from the Council of Mortgage Lenders show that gross mortgage lending dropped last month to reach the lowest figure since January 2005.
Declining consumer confidence as a result of falling prices has also been cited as a contributing factor. The HMRC data shows that house sales peaked in December 2006 when they reached 154,000 during the month - 62 percent higher than the most recent figure.
So far this year, 747,000 property sales have been recorded, down considerably on the 1.2 million logged at the end of September 2007. Howard Archer, chief UK economist at Global Insight, said the figures "provide yet further evidence of the dismal state of the housing market".
Meanwhile, the property website Rightmove said asking prices have fallen at their fastest ever rate this month as sellers seek to attract buyers in the difficult market.
