House sales to hit '30-year low'

By Sarah Pennells
BBC News

It is a worrying time for anyone trying to sell their house

The number of properties sold in 2008 is likely to be at its lowest level for 30 years and 30% lower than last year, according to a housing expert.

The prediction by Richard Donnell, from website Hometrack, comes as uncertainty in the market prompts many would-be buyers to wait in case prices fall.

Properties are staying on the market for longer and many sellers are having to drop prices to attract buyers.

The Council of Mortgage Lenders is predicting a 7% fall in prices in 2008.

Interest waning

One homeowner trying to sell his property told the BBC that he had been forced to cut the asking price by more than 10%.

"There wasn't a lot of interest at all," said Alan Copperwaite.

"Very few people came to visit the property and I had a lot of no-shows. I did have a couple interested in it but they pulled out because their family thought they could get it for a much lower price later on.

At the moment you've got a one in five chance of selling your house if it goes on the market today Henry Pryor, Primemove.com

But not everyone can afford to cut the sale price and even if they can it won't guarantee a sale, estate agents believe.

That's because buyers who don't have to move are choosing to stay put, hoping prices will fall further.

According to property website Hometrack, house sales are likely to be nearly a third lower this year.

"That's the lowest level we've seen since the 1970s and that's going to have an impact on what happens to prices," said Mr Donnell.

Rental trend

With more people deciding to rent rather than buy, properties are taking longer to sell and some aren't selling at all.

"At the moment you've got a one in five chance of selling your house if it goes on the market today," said Henry Pryor from Primemove.com.

"Historically agents would expect to sell one in two or one in three so there's a significant difference today."

So does this mean property prices will fall further to tempt buyers back into the market?

One estate agent believes prices will fall by at least another 5%.

"But after that I think they market will find its feet and stabilise and it will move on again," said Andrew Ryde, from Chamberlains Estate Agents.