Estate agents shut as housing market slumps to 'worst ever'

Offices in prime locations including Chelsea, Knightsbridge and Fulham have shut and some industry figures are admitting the market is now worse than ever.

Agents say sales in the capital have fallen from an average of about 10,000 a month to 5,000.

One of London's biggest chains, Kinleigh Folkard & Hayward, has closed its Knightsbridge office in Brompton Road.

Director Paul Masters said it was "a consequence of the difficult market conditions".

He added: "All lettings business has been transferred to our Fulham branch and the sales business to the Fulham and Mayfair branches."

Friend & Falcke has sold its office at 96 King's Road and closed down its Fulham branch. Managing director Simon Albertini said: "For many estate agents, the market we are experiencing this year is the most difficult they have encountered.

"We have been established for 49 years and survived through good markets, bad markets and downright terrible markets - but none as bad as this."

The Felicity J Lord branch at 100 New King's Road, Fulham, closed earlier this year. A spokeswoman said this was "because the lease was up".

The Fulham branch of Chard abandoned house sales two months ago and is now concentrating on lettings, which are improving as sales falter. The London flagship branch of international high-end agents Engel and Vlkers, in Sydney Street, Kensington, has also been closed down.

None of the company's directors was available to comment.

The closure of some agents is, however, helping others. Veterans Douglas & Gordon said that, for the first time, they had more buyers registering in July than in June.

Spokesman Ed Mead said: "This was pretty surprising as we would normally expect July to be a very quiet month.

One possible reason is the number of our rivals closing their doors.

"We expect to see more of this, as an awful lot of estate agents are on the brink and really struggling in this market, especially the recent newcomers who f locked into what was until recently a booming market.

"If they aren't actually closing, they are operating on a skeleton staff."

A report this week by the Royal Institution of Chartered Surveyors revealed the number of homes sold nationwide fell in July for the 14th month in succession. It blamed the credit crunch, the squeeze on mortgages and confusion over whether the Government will declare a temporary amnesty on stamp duty.

Eighty per cent of London agents reported prices were falling and the remainder thought they were stable.

However, RICS said the housing market in the capital was deteriorating less rapidly than previously and was doing better than other areas.