Tuesday, May 24, 2011
The UK housing market remained resilient across April with
slight increases and decreases across supply and demand. The number
of house-hunters that registered with NAEA state agents during the
month took a slight hit, reducing from an average of 290 in March
to 277 in April. The lull in demand for houses could well be
explained by the unusually high number of public holidays over the
course of the month that included the Royal Wedding weekend.
Key Findings
- Number of house-hunters registered per branch decreased on
average from 290 in March to 277 in April
- Number of sales agreed per branch remained the same with an
average of 8 across March and April
- Average number of properties available for sale per branch
increased slightly from 68 in March 69 in April
- Percentage of first time buyers (FTBs) decreased from 23 per
cent to 21 per cent
Many agents reported a high level of activity at the start of
the month in the build-up to the Easter break and then a drop off
in enquiries following this as many took advantage of the series of
bank holidays to enjoy an extended break abroad. Despite the drop,
demand still remains consistent with figures recorded last year
suggesting stability remains within the market (April 2010;
277).
The average number of sales recorded per branch by NAEA members
held up for a third month in a row with 8 across February, March
and April. Agents reported that despite a reduction in applicant
numbers owing to the public holidays, the quality of enquiries was
much higher than usual as sales stayed the same and were in-line
with year on year figures.
Encouragingly, housing stock levels increased slightly between
March and April moving from an average of 68 to 69. Sellers were
undeterred by the national events taking place and continued to
display confidence that buyers would make realistic offers on
property. Although regional variations remain, average national
supply levels are higher when compared with April 2010 where there
was an average of 62 properties per branch.
First Time Buyer (FTB) levels continued to decline last month,
moving from 23 percentage points in March to 21 in April. Although
the same figure of 21 per cent was recorded this time last year, it
is concerning to see that the Chancellor's Budget, which made
special concessions for this important part of the market, has
had little effect so far. Had the government focused on fiscal
stimulus policies across the wider property market, we might well
have seen some upward momentum instead.
Please download the full Housing
Market Report for April 2011