More than 90 per cent of Shropshire estate agents are reporting falling house prices, amid a lack of loan deals being approved. Figures today show the average number of house sales completed per surveyor was about 15 a month.The Shropshire outlook reflects the national picture, with agents across the country saying the inability of many buyers to secure mortgage finance was reflected in the collapse in transactions.

The survey showed 93 per cent more chartered surveyors reported a fall than a rise in house prices.

Demand remains weak with the balance of surveyors reporting new buyer inquiries still at a low ebb.

Last month, new buyer inquiries in Shropshire declined again with 25 per cent more agents reporting a fall than a rise compared to 35 per cent in June and 50 per cent in May.

RICS said in June county surveyors reported that “predatory buyers” were bargain hunting for property. But this month surveyors say “realism” has returned to the market with many sellers dropping asking prices to realistic levels.

New instructions to sell property in Shropshire edged closer to positive territory with five per cent more surveyors reporting a fall than a rise.

RICS spokesman Jeremy Dell, of JJ Dell and Co in Oswestry, said “The lack of mortgage finance has brought the housing market to a virtual standstill with first-time buyers rapidly becoming an endangered species. Going forward, there are signs that sales activity might pick up, however, sellers need to price property realistically in light of what is a tough market.”