Housing market 'suffering from lack of buyers'
Edited by Tom Bardsley.
The residential property
market is weak mainly because there is a lack of prospective buyers, according to one analyst.
Selwyn Lim, director of housing website Mouseprice, said that while transaction levels have improved "a little bit" since the worst days of the recession, they remain extremely thin.
Indeed, he added, the number of deals going through is still around 50 per cent below the levels seen at the peak of the market.
"There are just not that many people out there who are in a position to buy and so there is a lack of buyers competing against each other," Mr. Lim explained.
His comments come after Hometrack published research showing that demand for housing fell for a fifth consecutive month during November.
The drop of 4.3 per cent was the largest decline recorded by the company since January 2009.