19 February 2009

NAEA – HOUSING DEMAND IS UP BUT SUPPLY DOWN

 
POTENTIAL buyers are finally returning to the UK housing market – but are frustrated by a lack of housing supply and mortgage approvals.
 
The National Association of Estate Agents monthly market survey found that in January the number of house hunters on an average estate agent’s books had risen to 242 from 200 in December.
 
However the increase in demand did not translate into an increase in sales – which remained at six per agent in January. Encouragingly, however, 25 per cent of those sales were to first time buyers – more than double the number in December.
 
One reason why demand is not following through in transactions was demonstrated in the monthly housing stock figures, which showed that estate agents had an average of 75 houses on their books in January – the lowest number in more than 12 months and down from 100 in December.
 
This is likely to be in part caused by sellers withdrawing their properties from the market after pricing optimistically and being unprepared subsequently to drop their prices.
 
NAEA figures showed that the average selling price across all types of property was 8.7 per cent lower than the original asking price.
 
House hunters are also likely to be frustrated by the ongoing difficulty of obtaining a mortgage – however the NAEA’s figures suggest that when a mortgage is available people are no longer afraid to invest in property.
 
 
Chris Brown, President of the NAEA, said: “It is great that the pent up demand for housing in Britain – which the NAEA has long stressed was there – is now registering its interest with agents and beginning to look at property.
 
“But one positive sign in the housing market simply cannot be taken to represent the beginnings of a recovery. The number of sales per agent has held steady for the past three months and remains higher than it has over previous months – this is a good sign but frustrating as the evidence suggests it could increase substantially if mortgages were more easily available.”
 

Editor Notes

 
About the NAEA

The National Association of Estate Agents (NAEA), the residential sales arm of the National Federation of Property Professionals (NFOPP), is the UK’s leading professional body for estate agency personnel, representing the interests of around 10,000 members who practice across all aspects of property services both in the UK and overseas. These include residential and commercial sales and lettings, property management, business transfer, auctioneering and land.

The National Association of Estate Agents is dedicated to the goal of professionalism within all aspects of property, estate agency and land. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service in both sales and lettings, for all property matters. Each NAEA member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Association.
 

Contacts

 
For further information contact:
 
NFOPP PRESS OFFICE
 
Tel: 020 3128 8181
E-mail: press@nfoppmedia.com