THERE’S a will but not a way in the Worcestershire housing market. Despite increased interest from potential buyers, lack of mortgage funds means completed deals fell to a record low in December.

“Buyer interest is now at levels not seen since 2006,” said Worcester estate agent Charles Robinson. “Without mortgage finance availability, the housing market is at a standstill with transaction levels at an all-time low. For the market to be further stimulated, owners need to consider even lower asking prices, which is still a difficult pill for them to swallow. First-time buyers and owner-occupiers are now stuck in a market which does not fulfil their aspirations.

“The Government must act now to ensure that order is restored to the current chaos.”

Mr Robinson, head of Griffiths and Charles and regional spokesman for the Royal Institutution of Chartered Surveyors, (RICS) said that a first step would be for the Government to ensure the supply of new mortgage finance was restored.

“Without this help there is a danger homebuyers will be frozen out of the market, transaction levels and prices will fall to new lows, repossessions will increase and negative equity will become commonplace,” he said. “Without this boost, the country could fall into a deeper recession.”

There was a slightly more positive view from David Stuart-Smith, executive officer of Andrew Grant, who said: “December’s sale numbers were equal to the previous year, perhaps indicating the market had then bottomed in terms of activity levels. Agreed sales are now more stable than was the case during the latter part of 2008. The cancellation rate has improved to 30 per cent from its all-time high of a staggering 50 per cent.

“More liquidity will give greater encouragement to the market despite which we are currently witnessing an upsurge of activity which has been long awaited. Indeed, viewing levels have recently increased and have produced a commensurate rise in the number of offers. Admittedly this increased movement is among the committed buyers and sellers where price sensitivity is acute.”

The latest RICS housing market survey shows the balance of surveyors nationally reported house price falls fell back slightly in December with 73.5 per cent of chartered surveyors indicating a fall, a decrease from 75.8 per cent in October.

In contrast, two per cent more Worcester chartered surveyors reported a price fall, up to 73 per cent from 71 per cent in November.