A NCB report has hinted that four out of five Irish estate agents do not foresee an improvement in the property market during the next 12 months.

A quarterly residential property survey, conducted by the equity firm, highlighted difficulties securing mortgage approval.

First time buyers are suffering the worst from the current climate, according to NCB.

So-called valuation "stand-offs" between buyers and sellers has been blamed for the strong decline in property sales.

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The report points to rising interest rate as the key factor in pushing the mortgage component of the consumer price index up by over 17% during the last year.

Earlier this month, interest rates were lifted by 0.25% by the ECB, creating a standard rate of 4.25%.

These factors have led to a slower rush of buyers prepared to enter the market.

The survey found that more than half of the agents studied had experienced less viewings during April to June than the first three months of 2008. With 77% claiming a fall in sales volume.

During the second quarter asking prices continued to drop, with 85% of agents questioned concurring.

However, there was an indication that the falling rate of prices could be decelerating.

The NCB report was compiled from 47 responses from 185 surveyed estate agents. The average number of employees per respondent firm was 14.

(PR/JM)