Just this week the Halifax Estate agency branch in Chorlton (pictured), which was operated under franchise, shut up shop, while the Cheshire Building Society is restructuring its entire property sales network and also closing branches.
Dean Sanderson, Cheshire and Lancashire chairman of the National Association of Estate Agents said the market has 'never been so tough'.
He said that in previosu downturns, funding had been available, but since the Northern Rock crisis, and the general credit crunch, banks are being far more cautious, and that that getting a mortgage has never been tougher.
"I think everyone is cutting back, in terms of jobs, and in some cases branches. The market is very, very difficult at the moment.
"I think something like 4,000 estate agents are closing nationwide, which shows how difficult things are."
Mr Sanderson, whose own business has four branches in Manchester and Tameside said he sees `no respite' this year.
"I can't see any light at the end of the tunnel certainly for this year as new sales instructions are very. very quiet. On the positive side lettings are doing very well.
"Where the current situation differs from previous recessions is that people actually want to move - job security is not an issue - but are finding that they're unable to borrow as much as previously."
General market slowdown
Karen McCormick, chief executive of Cheshire Building Society said the general market slowdown and a change in the way consumers were house hunting was driving the changes it was making.
The Cheshire is closing three branches, in Hazel Grove, Buxton and Queensferry, Merseyside, as part of a wider overhaul of its branch network, which could cost up to 30 jobs.
Commenting on the housing market she said: "We have never experienced the market being so tough - it's fuel prices, it's food, it's the general speculation about the economy. A lot of people are renting now."
In response, the Macclesfield-based buildinfg society, which has already closed a branch in Manchester city centre, is taking staff out of its estate agency branches and beefing-up its online offering.
Karen McCormick said: "People are not looking for houses in the same way they did before - we are responding to consumer demands by virtualising our estate agency business."
This will mean that all new sale instructions and property viewings will be arranged through the head office, rather than through the branch network.
"We wil offera more flexible service for customers, I think it is the way forward for estate agencies.
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Jay B, oldham (04/07/2008 at 14:29)
NOT!!
They've had it good for far too long. between them and the banks they're the ones to blame for the current crisis we're encountering!
they over valued houses as demand grew bigger and bigger. raking in more and more commision as the prices sored.
banks kept lending more and more money to people to cover these ever increasing prices.
now its reached its peak and at the first sign of any trouble the banks effectively close up the mortgage market and the estate agents shut up shop because they aren't selling any houses no more.
i'm glad this has happen, i've been trying to get on the property ladder for a few years but every time i think i could afford somewhere the prices shot up again.