Housing market 'on its knees', says report

The UK housing market is “on its knees” with “little chance of beginning its recovery”, according to a survey of property prices.

A report by online estate agency Rightmove found the government’s stamp duty holiday has done little to limit the impact of the credit crunch on the housing market.

It said asking prices fell by 1% during the first three weeks of September, an improvement on the 2.3% drop seen in August, according to the Financial Times.

Rightmove commercial director Miles Shipside said: “The housing market is on its knees and will remain so until financial institutions address the disastrous state of the mortgage funding markets.

“We are now seeing the lowest level of new sellers for years. While this market provides a good opportunity to trade up, it requires a degree of bravery in the face of the ongoing turmoil in the financial markets.”