SEVERAL estate agency branches have closed as the South and West Dorset housing market goes through a nervous time.

Banks are being blamed for the problem because they are taking a tough line on mortgages in the wake of international finance problems known as the credit crunch.

The result is that the housing market in Weymouth, Portland and Dorchester has been hit by difficulties getting a mortgage which in turn has seen several estate agencies close offices to streamline their operations.

Real Directions has closed its office in Dorchester while Goadsby and Fordingtons have both closed offices on Portland.

Real Directions partner Glenn Smith said today that the company's remaining offices on Portland and in Weymouth remain open.

Mr Smith added: "A lot of agents are experiencing problems at the moment.

"It is a difficult time to do deals and often sales are collapsing because finance which was available at the start was not then available when the deal came to be closed. It is an extremely difficult market.

"We are streamlining our business and we have closed our office in Dorchester. We will be meeting with people to discuss the situation. That is all I can say at the moment."

Fordingtons spokesman Alan Diamond said: "The housing climate is very difficult at the moment.

"There has been massive growth over the past few years and people just can't get on the bottom rung of the ladder because of the cost of mortgages.

"Interest rates need to come down if the situation is to improve."

Senior Weymouth estate agent Mark Bonnett of Hull, Gregson & Hull said: "The market is tough at the moment. Alder King and Austin Wyatt both shut their Weymouth offices in December and more estate agency offices have closed since.

"Properties are selling but only at competitive prices, so it is inevitable that some estate agencies will streamline their operations.

"They are cutting back in a variety of ways, including advertising, and office closures are to be expected. It's all down to the banks and the way they have massively tightened the criteria for obtaining a mortgage.

"House buyers who could have bought with a 90 or 95 per cent mortgage are now being told that they can only have 80 per cent and this is stopping sales or making them fall through.

"An interesting point is that in the housing crash of 1988-1991 there were very few people looking to buy a house, but that is not the case here.

"We have a wide range of people who want to move but can't get the money to do so. It's a tough time now right across the board."