Number of homes sold falls to lowest rate since records began 30 years ago

Britain's housing market suffered a fresh setback today as figures revealed the number of properties sold between April and June fell to the lowest level since records began in 1978.

The monthly report from the Royal Institution of Chartered Surveyors shows the number of houses sold during that period was just 15.3 per estate agency.

Meanwhile 87 per cent of estate agents said prices had fallen over the last three months.

This is also the highest number since records began in 1978, and has risen rapidly from 56 per cent of agents at the start of the year.

One agent, from Exeter, Devon, said he was now doing deals at between 20 and 30 per cent below the peak of 2007.

An agent from York warned that, with the market in the doldrums, predatory buyers were circling to pick off the most vulnerable sellers.

'There are sharks on the sidelines waiting to pounce on vulnerable vendors,' he said.

Another agent, from Chesterfield, Derbyshire, said he had seen 'an influx of predatory buyers' and 'savage price reductions.'

The buyers tend to be cash-rich people who are unaffected by the mortgage drought which is having such a dire impact on the property market.

They know that anybody with a 'For Sale' sign outside their home is struggling to find a buyer, and will be getting few, if any, viewings.

David Sherwood, from Colchester, Essex, said: 'On the one hand, vendors are willing to accept a compromise and take an offer but opportunistic buyers are cynically dropping their offers at the point of exchange. Hardly cricket, is it?'

Jeremy Leaf, from RICS, said: 'With demand so low, would-be-buyers are negotiating from a position of strength. Even in a weak market, there are always opportunities for investors and buyers to profit and some are starting to circle for bargains.'

But some agents are experiencing fewer inquiries from buyers than ever before.

While some buyers see today's market as an opportunity, the majority have simply decided it is too dangerous to buy when prices are falling, or they want to buy but cannot get a loan.

One agent, from Huddersfield, West Yorkshire, said: 'We have experienced an unprecedented six- to eight-week period of inactivity with no telephone calls, no viewings and no sales.'

But RICS said there were still a few rays of light amid the gloom - with no evidence of 'distressed sales', when people are forced to sell and must accept any offer which they get.

Sales are typically 'distressed' because the owner has been made redundant and can no longer afford the mortgage.

RICS also said some types of homes, such as 'attractive country properties', and certain parts of the country, such as Winchester, Hampshire, are still attracting considerable interest from buyers.

One agent, from Winchester, said: 'It remains popular with family purchasers due to the combination of good state schooling and rail links to London.

'The country house market continues to be strong for period properties with land, particularly those requiring work.'