UK house buyers at record low - survey

The global credit crunch is pushing house-buyer numbers in Britain to a record low, figures released today showed.

The global credit crunch is pushing house-buyer numbers in Britain to a record low, figures released today showed.

The number of house-buyers on estate agents' books dropped 12 per cent last month - to 243 per agent from 276 in January - according to the National Association of Estate Agents (NAEA).

That was the lowest recorded in its monthly housing market survey to date.

At the same time the gap between asking prices and what properties sold for widened to 4.5 per cent.

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The NAEA said external pressures, including the credit crunch and squeeze on mortgage approvals, was making buyers wary and causing the property market to slow.

Lenders have been reassessing risk and tightening their criteria amid turbulent market conditions that have pushed up the cost of borrowing.

The NAEA called on the Bank of England to lower interest rates to help prevent the economy slumping and to help bring back "a renewed sense of optimism" for the consumers."

The Monetary Policy Committee has cut the base rate twice in recent months to 5.25 per cent, but some lenders have failed to pass the reductions on.

The NAEA survey came a day after Britain's largest property portal,Rightmove.co.uk,said sellers need a "reality check" when pricing their homes for sale, as unsold stock reaches record proportions.