House sales fall to 30-year low

LONDON (Reuters) - The decline in house prices accelerated in September and sales fell to the lowest level in at least 30 years, a survey showed Tuesday, in a sign the housing market slump may have some way to go yet.

The Royal Institution of Chartered Surveyors said its house balance fell to -84.2 last month from -81.8 in August, broadly in line with economists' forecasts.

The balance had shown some improvement in recent months after hitting a series low in April but RICS said market conditions had now deteriorated to their loosest since the housing market crash of the early 1990s.

"As it stands, only those with significant finances are in a position to access the market," RICS spokesman Jeremy Leaf said.

"The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come."

The figures are likely to reinforce expectations that the housing market will remain weak with many economists expecting Britain to slide into recession in the second half of this year.

Less than one completed property sale per surveyor went through per week in the three months to September, with the number of sales over that three-month period falling to 11.5 from 12.7.

Sales are down more than 50 percent on a year ago and at the lowest level since the survey began in 1978, RICS said.

Nonetheless, sale expectations turned positive for the first time since February.