The global credit crunch is hitting Britain's housing market, pushing house-buyer numbers to a record low.
The number of house-buyers on estate agents' books dropped 12% last month - to 243 per agent from 276 in January - according to the National Association of Estate Agents (NAEA). That was the lowest recorded in its monthly housing market survey to date.
At the same time the gap between asking prices and what properties actually sold for continued to widen to stand at 4.5%.
The NAEA said a 'plethora' of external pressures, including the credit crunch and squeeze on mortgage approvals, was making buyers wary and causing the cogs in the property market to slow.
UK lenders have been reassessing risk and tightening their criteria amid turbulent market conditions that have pushed up the cost of borrowing.
'Invariably, the global credit crunch, especially the US situation, has had a knock on effect, which coupled with consumer inflation, is placing continuing pressure onto the property market,' said NAEA president Stewart Lilly.
'We continue to call on the Bank of England to lower interest rates to help prevent the economy slumping and to help bring back a renewed sense of optimism for the consumers,' he added.
The number of homes on the market during February declined almost 11% to an average of 74 per estate agent as potential sellers awaited more favourable market conditions. Each agent made an average of eight sales during the month, the same as the previous month, but down from 13 a year ago.
