Crash in transactions

Published 09th Jun 2008

Property sales will fall by at least 40% this year, says the Royal Institution of Chartered Surveyors.

Last year, there were just under one million transactions, against the long-term norm of 1.3 million. If the RICS forecast proves correct, it means that just 600,000 properties could change hands this year.

New housing starts are also down, by 25% in the first quarter of this year compared with 2007, while developers struggle to sell existing stock.

Barratt Developments, Britain’s second-largest housebuilder, issued a profits warning after reservations for its new homes fell by half and an increasing number of buyers pulled out of purchases.

The value of Barratt’s book of forward orders, which includes reservations and exchanges on house purchases, today stands at £1.56 billion, a 26% decline on the £2.1 billion booked this time last year.

Meanwhile, estate agents all over the country continue to shut up shop.

Among the latest casualties was DB Estates in Kent, which shut all five of its branches, laying off 22 staff. It said that sales “just weren’t happening”.

Source: ' RICS '

View All Latest News