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Housing Market Improves

Thursday, February 17, 2011

HOUSEHUNTERS returned to the UK housing market in January as demand figures reached a six month high, according to the National Association of Estate Agents (NAEA).


The NAEA market report for January showed gains across both supply and demand for housing compared with December, although this remains in-line with figures from the same time last year.


The number of people registering with estate agents to buy property improved from an average of 227 in December to 252 in January.  However this is still down on January 2010's figure of 291.


While both the end of the holiday season and back-log in demand following December's big freeze helped to boost activity in January, this latest reports suggests there is still a considerable number of consumers reluctant to enter the market.


The number of houses available for sale increased from 64 per branch in December to 69 per branch in January indicating that demand for property can be met in the short-term, which will ensure stability. The average agent sold six properties in January compared to four in December.


Michael Jones, President of the NAEA, said: "It is encouraging to see activity levels begin to increase following the downturn we saw in December where bad weather and the Christmas festivities kept many house hunters away.


"However, when compared with our report from this time last year, the market is still showing signs of consumer reluctance. Macro-economic issues such as the VAT rise and interest rate pressures continue to put many people off searching for property.


"What we need to see now is the FSA using its newly-gained powers of oversight to ease mortgage lending restrictions that are preventing so many first time buyers from entering the housing market.


"The percentage of sales made to this consumer group decreased slightly from 25 per cent in December to 24 per cent last month. We must ensure that their aspirations for property ownership can be met."


Editor Notes

About the NAEA

The National Association of Estate Agents (NAEA) 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 NAEA is a sister organisation to the Association of Residential Letting Agents (ARLA), as is PropertyLive.co.uk, the UK's only regulated property portal.

The NAEA 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. Both NAEA and ARLA members are bound by a vigorously enforced Code of Practice and adhere to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Associations.

 



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