Insurance News Archive

House sales 'to drop by 30%'

The number of houses sold in 2008 is likely to be 30 per cent lower than last year, according to a property expert.

Richard Donnell, director of research at website Hometrack, said this will be the lowest figure since the 1970s and could lead to a fall in house prices.

The Council of Mortgage Lenders has predicted a seven per cent fall in prices this year.

Mr Donnell told BBC Radio 5's this trend is likely to remain for the next few months at least, with "no real sign" demand will improve.

He added: "We've obviously had interest rate cuts over the last few months but mortgage rates remain relatively unchanged so it seems prices are set to stay on a downward pressure for the next few months."

Henry Pryor, founder of website PrimeMove.com, added properties are taking longer to sell or are not being bought at all due to more people renting than buying.

Agents usually expect to sell one in two or three properties but the chances of selling currently stand at one in five, he added.

27 May 2008