The current credit crunch will have minimal impact on business at UK estate agencies, it has been claimed.

Paul Smith, chief executive of haart, a chain based in London, the Home Counties and the south-east, said that despite the recent turmoil on world financial markets, buyers are still keen to get on the property ladder.

"While the current credit crunch and its effect on major banks and lenders is certainly concerning, homebuyers looking to move will not be put off and we have not yet witnessed a drop in activity in our estate agency branches," he said.

But, Mr Smith predicted that the impact of the situation could cause a traditional seasonal slump, which usually occurs in mid-October, to begin at the end of this month "as a combined result of the lending uncertainty and the Hips confusion."

"However, with demand still exceeding supply, market activity is unlikely to see too much of a drop, although vendors will need to be realistic regarding their price expectations, especially if they want to move before Christmas," he added.

The forecast appears to echo the opinion of the Confederation of British Industry which suggested that a downturn in the housing market would cause only a "modest" impact on the economy.