New figures have revealed that house sales fell again in December to reach an unprecedented low, despite continued buyer interest.
There was more gloom in the housing market as new research revealed that the number of property sales dropped again in December.
According to the latest Royal Institute of Chartered Surveyors' (Rics) housing market survey the number of sales per agency (over a three-month period) reached 10.1 in December, down from 10.6 November. There was slightly more positive news in terms of pricing however, with fewer surveyors reporting a fall than in November.
This decrease in sales comes despite a strong interest from buyers, which has reached "levels not seen since 2006", according to Rics spokesperson Ian Perry. But the property market has been rocked by an unwillingness by lenders to provide mortgages, while many people have been struggling with repayments as the economy has continued its downturn.
"First-time buyers and owner-occupiers are now stuck in a market which does not fulfil their aspirations," said Mr Perry. "The government must act now to ensure that order is restored to the current chaos."
There had been speculation over the weekend that the government would introduce guarantees for mortgage providers in an effort to get them lending again. The Rics supported idea, describing as a "first step" the backing of "the new issuance of residential mortgage-backed securities".
Mr Perry warned that without assistance, the problems will continue and "negative equity will become commonplace", which will make the recession even harsher.
