The trend means that once more the property market has turned into a sellers market, with Nationwide figures showing that there has been an increase of over 8 percent in property prices over the past year fuelled by increased demand from buyers. The figures over the level of asking prices being reached with UK properties was released by the property company Hometrack.

Since the latter part of last year many industry groups and officials have been speaking about green shoots in the property market, with a number of signs of recovery in the field. Increased demand, rising property prices, and increased mortgage availability have all improved the outlook for the property market over recent months, although many are concerned over how long this might last and whether it is sustainable.

A statement from Hometrack read: ‘The proportion of the asking price has bounced back over the course of 2009 from a low of 88% in February 2009. This measure has now reached 93%, and is starting to plateau in the face of firmer pricing and reduced sales volumes.’

Another official said that things could be tricky for buyers wondering what sort of offer to put in, stating: ‘My tip would be to go in 10% below what you consider a fair price – but be realistic and don’t make it offensive – and then work up in small steps while letting the seller know you are serious.’

Properties selling at 93 percent of asking price is a post from: Glitec Loans

All of this has had a profound effect on estate agents’ sales figures, with some estate agents reporting average sales of less than one property a week. As a result of this one estate agency is now offering to waive commission fees on properties that are sold before the end of the year.

The estate agent, Lauristons, has reportedly written to clients in some affluent parts of London offering to sell homes for free if they sell before the end of the year.

It is thought that this move could cost the estate agent around £10,000 per transaction in some cases. Estate agents normally charge between 1.5% and 3% in commission, so this could save sellers a lot of money and could cost the estate agency a small fortune in lost revenue. However, many estate agents have lost their jobs and some estate agency firms have had to close down due to lack of business over recent months.

One industry official said that whilst the offer looked inviting consumers should check the small print before taking up the offer. He said: ‘Potential clients need to ensure, for example, that if their property is placed on the market before Christmas but not sold until after the New Year there will still be no fee. But in general, when people are looking for a successful agent, one has to suspect that charging 0% commission is not a good sign.

Estate agent sales levels result in fee free sales is a post from: Glitec Loans

The company, Blenheim Bishop, was founded by Jonathan Vandermolen, who said that over the years the firm has enjoyed great success and has remained busy. However, since the onset of the housing slump business has reached such a low level that he has been forced to make a number of sales staff redundant and close the doors on its sales operations. The company will still focus on letting properties, as the number of properties coming onto the market for rent, and the high demand for rental homes, makes this the more viable option.

Reports indicate that the housing slump has already seen a number of other formerly busy and successful London estate agents cease operations, and there could be many more closures if the housing slump continues at its current pace over this year and next, as has been predicted by many industry officials.

Vandermolen stated: ‘I couldn’t make it work. Income from new homes was 75% down on the previous year and my view of that market is not good long-term.’

He added: ‘Most agents operate on the basis of a 25 to 30% profit margin. If trade is 50% down and 50% of your costs are for premises, staff and advertising, then it becomes difficult. If we have a couple of years of this, perhaps 50% of all estate agents will go out of business.’

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London estate agent closes its doors on sales is a post from: Glitec Loans

In addition to this the tighter lending conditions that have resulted from the global credit crunch mean that many people that are looking to purchase a property cannot get the finance that they need, and are therefore unable to buy a home even if they wanted to. The National Federation of Property Professionals stated that up to eighteen thousand estate agents could suffer as a result of the situation, and accused lenders of over-reacting to the credit crunch, thus fuelling problems in the housing sector.

One official from the federation stated: “Lenders do not seem to be in the business of lending any more. They are the ones who lent irresponsibly and now the public and our industry are paying the price.”

An economist from the British Chambers of Commerce said: “The Government must adopt pro-active policy measures aimed at countering the threats to growth. Public finances remain stretched. There are large current deficits and excessive levels of total borrowing.” He also went on to state: “Recent tax changes have undermined business confidence and they will face a difficult and risky climate over the next year.”

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Estate agents at risk of problems due to mortgage and housing chaos is a post from: Glitec Loans