Bank Of England

Bank Of England have reported today that the weakness for the demand for property has intensified.

Estate agents have reported a further reduction in enquiries into established properties and that the sale periods are lengthen. They also report that there has been a big rise in the cancellation of sales blaming economic conditions.

It says vendors were accepting discounts on asking prices in May and that this is reflected in the fall in price inflation for established homes.

Estate agencies are reporting a reduction in their of staffing levels to accommodate the reduction in demand for services.

The summary also reveals demand for new housing has continued to weaken as a result of tighter credit conditions.

The Bank Of England also report that home builders were offering more incentives and discounting heavily to dispose of stock in May, but these measures did not stave off price inflation for new homes, which is now slowing more than that for established homes.

In addition it says the sale of land by developers in an effort to maintain cash flows has contributed to falling land prices in some regions.