UK housing market report for January 2012
- Average number of house-hunters registered per branch decreased
from 294 in December to 260 in January.
- Number of sales agreed per branch increased from an average of
5 in December to 6 in January.
- Average number of properties available for sale per branch
decreased from 62 in December to 60 in January.
- Percentage of First Time Buyers (FTBs) increased from 21 per
cent to 23 per cent between December and January.
The UK housing market in January presented a mixed picture of
activity across both supply and
demand, with indications that the First Time Buyer (FTB)
market is looking to make the most of the
Stamp Duty Holiday on properties up to £250,000 before the
tax-break comes to an end next month.
The number of house-hunters decreased over the course of the
month with 260 people registering
with an NAEA agent in January, compared to 294 in December.
Year on year, this remains above
average, given that just 252 people had made enquiries in
their search for a property in January 2011.
The level of available housing stock also dropped, from an average
of 62 properties per branch in
December 2011 to 60 per branch in January 2012. Although
between the two months this may seem
a relatively small decrease, it marks the lowest supply level
in 19 months (June 2010; 58). Compared
with figures recorded for the same month last year, average
supply levels are down by 9 properties
per branch; (January 2011; 69). Anecdotal evidence from NAEA
agents suggests that sellers are
being cautious given concerns about the wider economic
situation, concerns about obtaining a good
price for their home, as well as difficulty in securing a
Despite the drop in both supply and demand, sales actually
increased during January 2012, moving
from an average of 5 per branch in December to 6 per branch in
January. The fact that FTBs also
increased their overall market share over the same period
suggests this could be a contributory factor
for the bolstered sales figures. The number of FTBs buying
property last month increased from 21 per
cent in December to 23 per cent in January; the highest level
for more than 8 months. NAEA agents
are reporting that the imminent end of the Stamp Duty Holiday
for properties worth up to £250,000 in
March 2012 is proving an added incentive for the starter end
of the market to capitalise on the saving
before the Government ends the exemption.
You can view the full market report by clicking here