Property crash is so bad even the 'For Sale' signs aren't selling

We had been warned the housing market was in meltdown.

But now come signs the plunge could be even worse than we had feared - as even 'For Sale' boards themselves are not selling.

Kremer Signs, which supplies some of the country's largest estate agents, is laying off staff as business dwindles.

Enlarge   Gary Gosney at the Kremer Signs factory, pictured with the For Sale signs the company cannot sell

Gary Gosney at the Kremer Signs factory, pictured with the For Sale signs the company cannot sell

Office manager Gary Gosney said: 'In the last year we've seen at least a 45 per cent drop in revenue. We were operating with 65 staff and have had to lose 25 of them.'

Kremer's monthly production is down by around 5,000 boards on last year.

Mr Gosney said: 'Most estate agents used to order at least 100 to 150 at a time, but that's now down to under 30.'

It comes as a report found the housing market plunge could see prices fall by 25 per cent, while some millionaires' row properties could drop by £300,000.

The fall-out of the City turmoil, with thousands of job losses, will cause prices in prime Central London to drop by as much as 30 per cent, according to upmarket estate agent chain Savills.

Enlarge   Kremer signs

Kremer's monthly production is down by around 5,000 boards on last year

Until now, it had been thought that top-end homes would be less affected by the slump. But streets that have achieved millionaires' row status in the boom since the turn of the millennium will find this is whipped away by the crash.

Savills calculates a property worth £1million at the market peak last summer will be down by £180,000 by the end of this year to £820,000.

It estimates the price will fall to £705,000 by the end of 2009, a drop of almost £300,000 or 29.5 per cent compared with the 2007 peak.

The Savills predictions are more optimistic than some analysts', which forecast falls of up to 40 per cent in the next two to three years.

However, amidst the gloom some streets are still paved with gold. A study by the Halifax has identified roads with the costliest homes.

Top comes The Vale in Kensington, where the average is £4,677,500, followed by Panorama Road on the Sandbanks peninsula in Poole, Dorset, at £4,158,333.

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