150 estate agents closing each week

As many as 150 estate agents could be closing each week in the UK as the credit crunch continues to take its toll on the housing market.

Research from financial analysts Debtwire finds the number of estate agents has fallen from nearly 13,000 at the start 0f 2008 to about 12,000 at present.

This equates to the closure of some 150 branches a week, with the pace thought to be accelerating.

Furthermore, an average of four agents employed by each, job losses could run into the thousands.

"The irony is that there is no shortage of people who want to move house, but without mortgages they just can't do so," explained Peter Bolton King, chairman the National Association of Estate Agents (NAEA).

"Estate agents are having to close because there just isn't enough movement in the housing market and that is likely to have a much wider impact because a healthy housing market is essential for the health of the high street," he added.

"When no one is moving, the negative feeling that creates tends to make people tighten their purse-strings."

After a decade of virtually relentless growth research from both Halifax and Nationwide report house prices fell year-on-year for the first time in over a decade during April.

While the fall can partially be attributed to a deficiency in supply and demand, lax criteria from high street lenders for mortgage has also played a part.

With this credit now disappearing from the market following the credit crunch, potential homebuyers have been unable to secure necessary funds, reducing demand and slowing transaction levels.

Lenders have been reducing their exposure to the market, reducing the number of mortgage products on the market, and cutting maximum loan-to-values (LTV).

"The only way things will improve is when banks and building societies start to open up their lending criteria so people can borrow money and then the housing market will start moving again," concluded Mr Bolton King.

Chris O'Toole