Wednesday, June 22, 2011
Buyers are still failing to overcome the significant barriers to
home ownership that the current housing market represents,
according to the National Association of Estate Agents.
The latest monthly market report from the organisation showed
only slight decreases across supply and demand in May. In May, 275
people registered with a branch, compared to 277 in April. However,
this is still well above data from a year-on-year comparison, where
a figure of 265 was reported for 2010.
The average number of sales agreed per branch stayed at eight
for the fourth month in a row. But the percentage of sales to first
time buyers (FTBs) increased from 21 per cent in April to 24 per
cent in May. The average number of properties for sale per branch
decreased slightly from 69 to 68.
According to the NAEA, the combination of large deposit demands,
pressure on household finances and the gloomy economic picture for
the UK is causing stagnation in the housing market.
President of the NAEA, Wendy Evans-Scott said "Demand for
property remains consistent but the barriers to buying are proving
impossible to overcome for the vast majority of consumers.
"Our members have likened the housing market to an obstacle
course, with many falling at the first hurdle as the finance
required to buy just isn't available. If they can actually get
finance they are struggling to find the right property as there is
not enough supply to offer the choice and then they still have to
find the money to pay for Stamp Duty.
"Sales have continued at a similar level thanks in part to
increased activity within the £1 million + homes category with
significant interest from foreign buyers in London and the South
East. But there are severe restrictions elsewhere in the market as
buyer interest has failed to translate into transactions.
"The banks must find a balance between the loose lending of the
boom and the rigidity of the current lending rules; house buyers
need the Government to act in a sensible and proportionate way by
encouraging the banks to offer adequate financial help to
buyers."
*Please find a copy of the market report for May
attached*