Since the onset of the global credit crunch credit conditions and mortgage lending have become very restricted, and many people are finding it difficult to get a mortgage or other type of credit, which has had a severe knock on effect on many different industries.

One of the effects of this problem is that property sales have been tumbling over the past year, with many estate agents going out of business as a result of being unable to sell properties to people that cannot afford them and cannot get the finance that they need.

Officials from the Royal Institute of Chartered Surveyors have recently said that February was another bad month for property sales, with sales levels sinking once again, and this showed that whilst some estate agents had reported renewed interest from would be buyers the interest was still not converting into sales even though property prices were continuing to fall.

RICS said that whilst many people are trying to get their hands on a property now that prices are around 20 percent lower than a year ago many simply cannot get a mortgage in the current financial climate.

RICS said that lenders are reluctant to offer mortgage to those without a fairly sizeable deposit, and this means that many first time buyers, who used to keep the market buoyant, are now out of the running when it comes to taking out a mortgage and buying a property. Also, uncertainty over the economy and job security is putting many people off from taking the plunge and purchasing a property.

An official from RICS said: ‘Potential buyers continue to come through estate agency doors but without mortgage finance transaction levels are likely to remain close to all-time lows. Worryingly, the lengthy process of obtaining mortgage finance, even for those with large deposits, is contributing towards the blockage in the market place. Family homes remain in demand but flats are proving harder to sell in many areas as first-time buyers are struggling to gain a foothold on the property ladder.’

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