Market prices to fall to 1970s levels

The survey, released today, found average prices nationally were down by one per cent over the month and by 2.5 per cent over the first half of 2008.

The latest survey highlights how the continued loss of confidence in the market continues to undermine both activity levels and prices.

Hometrack’s director of research Richard Donnell said: “New buyer registrations were down nationally 5.7 per cent in June and have now fallen by 52 per cent since the start of the credit crunch.”

“This drop in volumes was always possible as around half of all transactions in recent years have been driven by aspirational or non needs-based movers who are now sitting on their hands.

“The net result is a sizable drop in transaction volumes which look set to reach levels not seen since the 1970s.”

This month in London, the number of properties registered for sale was up 2.4 per cent, but the number of agreed sales fell by nearly seven per cent and the number of new buyers registered fell by 6.8 per cent.

On average preperties in the capital were sold for 91 per cent of the original asking price in an average of around eight weeks following 17 viewings.

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