Estate agents in danger due to housing slump

A recent report has indicated that many estate agents could be facing a disastrous future as a result of the housing slump that has hit the UK markets.

Not only have house prices been plummeting over recent months but the level of sales in the housing market has also dropped significantly and is set to get worse.

Officials have blamed a number of factors for the drop in house sales, and this includes tight credit conditions that are stopping many consumers from being able to get a mortgage to purchase a property, and also falling house prices that are putting many potential buyers off in case they fall further once they have taken the plunge.

There are now fears that up to eighteen thousand estate agents could end up going bust if the current trend continues, with many struggling to secure sales and make commissions.

One official said that lenders were overreacting to the credit crunch, stating: “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.”

The British Chambers of Commerce added: “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.”