A gloomy end to the year on the borough's housing markets has been followed by an equally tough start to 2009 as the credit crunch continues to grip the economy. Some estate agents report sales of properties have slumped by up to half what they were when the market was at its peak. Here SARIKA SHARMA speaks to people within the industry to get an idea of what the future holds for homeowners, sellers and buyers alike.

ESTATE agents say Hillingdon property prices have fallen by at least 15 per cent in the last two years with some estimating it has dropped by twice that amount.

Property companies have said the increased cost of borrowing has meant fewer people are able to buy which has seen their sales almost halved.

Dominic Hanson at Evans and Co in Uxbridge Road, Hayes, said: "I personally feel that the drop has been much more than the estimated 15 per cent. People are still not getting their asking prices. Previously we were probably selling between four to five houses a week and now we're selling about one a week.

"One of the main problems for our customers is that it (Hayes) is not an affluent area. Many people are working class and they can't get mortages on lower rates because they don't have enough deposit.

Peter Lawrence at Lawrence Rand in Victoria Road, Ruislip Manor, said: "Prices have dropped massively, a lot of people are turning to renting, including many people who have sold their homes, which is really saturating the lettings market.

"We're finding that where houses took us an average of about eight weeks to sell last year, they are now taking about 14 weeks."

He said one of the reasons for this is because of the increase to interest rates on mortgages, particularly for 90 per cent mortgages which have gone up to seven per cent compared to an average of about five per cent last year.

He added: "I expect the prices to continue to drop but I think they will level out at about 20 per cent which it will then stay at for the next few years."

Christopher Harper, business partner at Christopher Neville in High Street, Uxbridge, said: "Sales have decreased by about 40 per cent since last year but our business has a strong lettings market which is one of the core revenue generators for the company.

"But people are still buying and the reduction in property prices isn't necessarily a bad thing, people have complained about house prices being too high for too long and this may finally give an opportunity for more individuals to enter the market."

* WHILE more than seven property companies have scaled down and closed offices in the borough over the last two years, one is bucking the trend by opening their first branch.

Whilst Frank Farr, Thompson's Estate Agents and Peter Rolfe, to name a few, have closed down some of their branches, Royce estate agents has opened up in Cowley Mill Road, Cowley just before Christmas.

Branch manager at Royce, Surj Dhunna said: "I think one of the reasons why estate agents are closing down in the area is to do with over budgeting.

"They are forecasting profits which are too high and then they are unable to meet them because of their overheads.

"The fact that we're able to open in the current climate shows that we have the potential to survive in any situation.

"I can't let all of our secrets out but we have been able to start the company because we're offering slightly less fees and a high level of service."

* THE slash in interest rates by The Bank of England to 1.5 per cent will not make a marked improvement to the property market, according to estate agents in the area.

The reduction was announced by the bank last Thursday, but both Mike Flowers, a negotiator at Gibbs Gillepsie in High Street, Uxbridge, and Peter Lawrence, company director at Lawrence Rand in Victoria Road, Ruislip, agree this is not going to change the situation unless banks reflect this cut in their lending.

Mr Lawrence said: "I don't think the cuts in the interest rates will make a difference at all unless banks pass it on to the purchaser which they are saying they won't do."And even then people are struggling to get mortgages because they don't have an adequate deposit."

Mr Flowers explained: "People who are getting mortgages these days are still getting higher rates than the base rate because banks are trying to regain the money they have lost.

"If this reduction is passed onto mortgages then it will make a difference for people wanting to buy.

"Buyers now know a bit more about the market they are buying into then they did with the instability of the market last year.

"But even with rates being at their lowest they have been for a long time, people's confidence has been affected and they still aren't as sure about buying."