The number of house sales dropped again this month - to the lowest figure since 1978, according to RICS' UK housing market survey published today.

The average number of transactions per surveyor over the last three months is now at 17.4, the lowest figure in 30 years.

Research from Rics did, however, indicate a slight improvement in the number of members who reported a fall in house prices.

Around 92.9% more agents reported a fall in house prices, up from a figure of 94.7% for April.

RICS spokesperson Jeremy Leaf said:
"While demand remains weak and housing transactions continue to evaporate, there is a very real danger to the wider economy.

The property industry will not be the only casualty in the fall out from the credit crunch, with the high street and purveyors of a range of household goods, including furniture and white goods also feeling the pinch.

Construction workers such as plumbers and bricklayers will start to see employment opportunities dry up as the pace of housing transactions continues to abate."