IT is always sad when a company goes into administration, particularly a company with such a long history as Sandersons.

The 150-year-old Darlington-based estate agent has been forced to place its sales operation into administration in the face of a rapidly declining market.

Although the name will survive along with the lettings side of the business, all seven of Sandersons’ regional estate agents offices will close, with the loss of 15 jobs.

The news, coming as latest figures from the Bank of England reveal a 70 per cent fall in the number of new mortgage approvals last month, is a stark indication of just how badly the housing market has been hit by the credit crunch.

A lack of finance, particularly for anyone looking to borrow more than 75 per cent of the value of a property, is continuing to hold back pent-up demand for new homes.

Later today the Government will launch its £200m mortgage rescue package in key pilot areas, including Darlington, Stockton and Middlesbrough.

But £200m does not go very far these days. Although the scheme will help 6,000 households avoid repossession, thousands more families will be disappointed.

The Government’s mortgage rescue package is a welcome start, but it will not be nearly enough to help the thousands of families who will face real problems meeting their mortgage repayments during the downturn. For them, the only hope lies in a sympathetic hearing from their bank or building society.

Lenders have pledged not to begin repossession proceedings for at least three months. But that is only one month more than the current benchmark of two missed payments.

Ultimately, repossession is in no one’s best interests. Not the families who lose their homes; certainly not the banks who merely flood an already saturated market with more housing.

We acknowledge that, in some cases, repossession will be the only option, but it should only ever be used as a last resort.

As for Sandersons, we wish the company’s letting arm every success in the future.