Home sales in Britain have fallen to at least a 30-year low over the past three months, according to the Royal Institution of Chartered Surveyors (Rics).

The culprit is the shortage available mortgages, which is "stifling" the housing market, Rics says.

The Rics survey found that average completed sales per Rics member had fallen to 10.9 between August and October. That is fewer than one property a week, and is the lowest level since Rics first began compiling the figures in 1978.

The survey found that London had seen the biggest fall, with members reporting an average of just 6.4 sales over the three months.
 
This affected house prices, with 84% of its members reporting that prices had fallen between August and October, while 14% said prices had been level and 2% had seen a rise.

Last week's decision by the Bank of England to cut interest rates to 3% from 4.5% would help to boost sales, said Rics spokesman Ian Perry. "Even so the general lack of mortgage finance remains a major blockage in the housing market for a large majority of would-be buyers."
 
This opinion was confirmed by figures from the Council of Mortgage Lenders (CML) showing that 35,000 loans for house purchases were granted in September, 15% down from the  41,000 in the previous month, and 57% lower than in September 2007.

But Rics took an optimistic view of future prospects, saying that the worst may now be over, with 20% of its members expecting sales to increase by the end of the year. That compares with just 4% in September.
 
Rics said the growing feeling that sales would start to rise again was being driven by more sellers agreeing to drop their asking price.

“Sales should increase in the coming months as more and more sellers understand that greater realism is the only way to make that long desired move," Mr Perry said.

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