Almost one in ten home sales falls through because buyers cannot obtain finance, a survey of members of the Royal Institution of Chartered Surveyors (RICS) carried out for The Times has found.

The conclusion calls into question the effectiveness of the Government’s strategy to revitalise the housing market. Estate agents and surveyors said that 9 per cent of agreed deals were collapsing — a picture that had not changed over the past three months. This confirmation of the continuing mortgage drought comes as interest in property purchase increases.

The Rightmove website yesterday reported its busiest week, with page views at 134 million in the week to July 11.

Agents said that one failed deal in ten was the mark of a good agent and that some would be experiencing a greater failure rate. Jeremy Leaf, of Leaf & Co, a London estate agent, said: “We are seeing around 10 per cent of transactions failing to go through, but that should be put into context. We are in a location where people have lots of equity, or are cash buyers.”

Simon Rubinsohn, chief economist for RICS, said: “A significant number of would-be buyers — particularly first-time buyers — still cannot get finance. The Government’s attempt to improve the flow of funds is not delivering.” The Treasury’s Asset-Backed Guarantee Scheme was supposed to inject new funds into the market, with banks issuing securities to raise cash. However, as a critical report by the Commons Communities and Local Government Committee highlighted last week, big banks have yet to tap this source.

The transaction failure rate means some agents are submitting would-be buyers to financial health checks before considering their offers. David Smith, of Carter Jonas, said: “I would love to take people on trust but you now need to check.” He recently advised a seller who had received an offer on a £400,000 property not to instruct a solicitor until the buyer could prove that he would qualify for an 85 per cent loan-to-value advance.

Figures issued yesterday by the British Bankers’ Association (BBA) indicate a pick-up in lending, with totals of mortgage approvals reaching a 15- month high, but significant obstacles lie in the way of even the creditworthy. Peter Rollings, of Marsh & Parsons, the agent, said: “The process can take as long as seven weeks and, if it emerges that you have, say, paid a gas bill late, you go to the back of the queue again.”

Such is the fear of rejection among househunters that they are now contacting mortgage brokers before viewing any properties. There is no guarantee that mortgages promised now will be available in several months’ time. Ray Boulger, of John Charcol, said that half of applicants for 90 per cent-plus loan-to-value mortgages would be turned down.

According to RICS members, more mortgage requests are now being rejected in the North West, although there is an improvement in the South East, Scotland and Northern Ireland.

High street banks approved 32,235 home loans for house purchases last month, up 64 per cent from June last year, BBA figures showed. That is still modest compared with the monthly average of 61,500 approvals for new buyers over the past 12 years.

Net mortgage lending, which strips out redemptions and repayments, rose 5.1 per cent on the year, to £2.6 billion in June, to take the total for 2009’s first half to £18.1 billion, the BBA said.

Howard Archer, the IHS Global Insight economist, said: “Housing market activity is still very low by past norms and at a level typically consistent with falling house prices.”

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