Activity in the housing market remains subdued.
House sales have now hit their lowest level in 30 years, according to the Royal Institution of Chartered Surveyors (Rics). Its latest housing market survey reveals that the average number of transactions per surveyor fell again last month as buyers were held back by a lack of mortgage finance.
Sales fell to around 10.9 per agency during the three months to the end of October, compared to 11.5 in September. This is the smallest figure recorded by Rics since its survey began in 1978. London was the area worst affected by the decline in activity, with surveyors in the capital reporting just six sales each over the period.
However, despite the gloomy figures, the survey reveals a hint of optimism about the future prospects for the housing market. Indeed, 20 percent more chartered surveyors said they expect to see an increase in sales over the next three months - up from just four percent in September.
Rics spokesperson Ian Perry said that while the Bank of England's latest interest rate cut should provide a boost to the mortgage market, conditions remain tight and are likely to restrict activity going forward.
However, he added: "Fortunately, many vendors have finally started to accept current market conditions and are dropping their asking prices to achieve a sale. Sales should increase in the coming months as more and more sellers understand that greater realism is the only way to make that long desired move."
According to figures from Rightmove, average asking prices rose by one percent in October as sellers attempted to counteract the large discounts many buyers are asking for.
