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UK government and lenders urged to help first time buyers as they become ‘an endangered species’

But the organisation, which has 86,000 members worldwide, revealed that property sellers are dropping prices to a more realistic levels and this gives some hope in a market where sales have fallen to their lowest level in at least 30 years.

However, a number of surveyors said they would like the government and lenders to help entrenched buyers as this would aid recovery.

In the latest RICS UK housing market survey the average number of transactions per surveyor fell to 14.4 during the three months to the end of July, a record low.

But house prices dipped slightly less than expected, with 83.9% more surveyors reporting a decrease than a rise in house prices in July, down from 86.9% in June.

Indeed, sales expectations in some regions are becoming more optimistic, especially across the South of England and Yorkshire and Humberside. Also repossession figures still remain well below the levels seen in the early 1990's, the report says.

'The lack of mortgage finance has brought the housing market to a virtual standstill with first-time buyers rapidly becoming an endangered species,' said RICS spokesperson Ian Perry.

'Going forward, there are signs that sales activity might pick up a little as sellers start to re-evaluate unrealistic asking prices. However, the current confused messages from the Government regarding stamp duty risks damaging any returning confidence and may discourage mobility,' he added.

Activity varies from area to area. For example in County Durham there has been an increase in the number of properties being placed on the market. 'Prices continue to move downwards but this does not deter sellers. We have had an increase in the number of properties placed on the market in the past month. Buyers are driving hard bargains. Realistically priced houses sell well,' reported Surveyor Stuart Allan.

In Kensington, London, foreign investment and demand is still high, according to surveyor Kim Turner with interest coming from France, Spain, Italy, the Middle East and the Far East.

And in neighbouring Chelsea there are plenty of cash buyers. In other areas there is optimism that interest will pick up in September when the summer holidays are over. Surveyors comment that they would like the Government and lenders to do more to get the market moving again.

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