Housing Transactions Slump
Those in the construction industry or estate agents were faced with the grim evidence of the overwhelming slump in market activity.
The number of housing transactions is expected to fall to 400,000. This is 60% less than the 1990s slump when housing transactions fell to 1 million.
The credit crisis and poor mortgage availability is to blame for this unprecedented decline in activity. With little immediate prospect of a change in fortunes, many construction workers and estate agents are at risk of being made unemployed. The housing sector could push the UK into recession.
The Bank of England reported only 36,000 housing transactions in June.
Estate agents across the country are reporting very thin volumes, with some branches saying they are lucky to get 1 sale per week.
The renting sector is booming as first time buyers who can’t get a mortgage look to rent.