An inability to obtain secured loans has led to a drop in house sales, it has been suggested.
The Royal Institution of Chartered Surveyors (Rics) has revealed that transactions are at their lowest point since it began keeping records in 1978.
And spokesperson Ian Perry noted that would-be buyers have been kept out of the market because they cannot obtain a mortgage.
Rics' UK housing survey showed that chartered surveyor estate agents recorded an average of 10.9 transactions over the last three months, although in London the figure dropped to just six.
However, some Rics members remain optimistic, with 20 per cent more than a month ago stating they expect sales to rise.
"Fortunately, many vendors have finally started to accept current market conditions and are dropping their asking prices to achieve a sale. Sales should increase in the coming months," said Mr Perry.
Last week Halifax revealed that house prices have dropped by 13.7 per cent over the last year.
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