The National Association of Estate Agents have issued a reminder to all first time buyers that the Government’s holiday on Stamp Duty Land Tax will come to an end in two months time, on Saturday 24th March 2012.

Wendy Evans-Scott, President of the NAEA said: “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase.  If you are currently in a chain and waiting to complete your purchase, then make sure that others in the chain know about the end of the tax holiday too.  Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

After the tax exemption has come to an end, first time buyers will face a tax of 1% on house purchases between £125,000 and £250,000 and a 3% tax on purchases over £250,000.

The National Association of Estate Agents recent figures show that the number of sales to first time buyers edged up during November and December from 19% to 21% of sales per branch. However, they still represent a low percentage of overall property sales and NAEA data shows the number of first time buyers getting on to the housing ladder hit a three-year low in October 2011 at just 16% of sales.

Mrs. Evans-Scott continued: “First time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many are keen to purchase their first home before the tax exemption deadline.

However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the 1% tax could be disastrous. The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market.”

The UK housing market, unusually for the time of year, saw an increase in demand for property during December.  However, as one might expect, actual sales and supply levels decreased in the approach to Christmas.

The number of house-hunters registering with an NAEA Agent increased from an average of 262 in November to 294 in December, bringing it nearer to levels recorded between July and October 2011.  December’s figure is above average when compared with December 2010, where only 227 house hunters registered at NAEA Estate Agent branches.  NAEA Agents reported that house-hunters remained committed to the property search right up until the Christmas break, suggesting a push by house-hunters to secure a property before the end of the year, or early in 2012.

Sales declined during the month, moving from an average of 6 in November to 5 in December per branch. This is the lowest level for completed transactions for 12 months.  The last time transactions went below 5 per month was in December 2010, when an average of just 4 properties were sold per branch. However, traditionally Agents do not expect great numbers of sales in this particular month.

Available housing stock also contracted slightly, with 62 properties on the market in December compared with 65 in November, suggesting sellers were keen to hold-off from entering the market until the New Year, as is again to be expected during this period.

First Time Buyer levels saw an increase, up from 19% in November to 21% in December, although this part of the market continues to suffer from harsh lending restrictions and high deposit requirements.

NAEA President Wendy Evans-Scott said: "It is pleasing to see that prospective house-hunters remained determined to continue their search for a home despite the slowdown we normally expect to see at this busy time of the year.  While this has not currently converted into actual sales, which were slightly lower than in previous months, I remain confident that this clear demand for property will be met with sensible pricing of homes by sellers in 2012."

The National Association of Estate Agents has revealed its predictions for the UK property market over the next 12 months.  Peter Bolton King, Chief Executive said: “2012 will see a ‘gradual’ recovery for the UK property market, as it continues to bounce along the bottom with no ‘great upturn’ to mark a change from the previous 12 months.  Mr. Bolton King said: “I don’t believe that we will see a significant fall in house prices over the next 12 months as some have feared.  Equally, it is unlikely we will see any great upturn to help the market back to full capacity.  It is likely that property transactions will remain at a similar level to that in 2011.

However, a lack of available finance will remain the biggest barrier to would-be home buyers in 2012 warns Mr. Bolton King, with first time buyers in particular struggling to access mortgage finance from many major lenders.  He said: “Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies.  Clearly, when the Stamp Duty holiday disappears in the second quarter of 2012 it will become even more difficult for first time buyers to access the market.”
Commenting on regional variations, he said: “What we will see in 2012 is a continued increase in   ‘micro-markets’ across the country.  Demand for property in some areas fuels a healthy market while other less desirable areas are in danger of being left behind.  Even within the same town we see some types of property proving more popular than others.  Pressure for housing will increase in London and the South East throughout 2012.  The top end of this market will also remain very resilient and we believe that purchases from overseas investors will continue apace.”

Overall Mr. Bolton King believes that house prices, on average, will see little change.  “Confidence in 2012 will be a key factor and this, to some extent, will be driven by the media.”

Rightmove the property search website has stated that asking prices slipped 2.7% over the last month.  Reporting in mid December it urged sellers to get them down further. The site said that asking prices finished 1.5% up on the year and it expects them to move up another 2% next year, with prices underpinned by a shortage of new sellers.  It expects there to be fewer homes coming to the market in 2012 than in 2011.

With the average asking price now standing at £225,766, there is still an enormous gulf between what sellers hope to achieve and what they actually get: the Land Registry is currently quoting an average selling price of £159,999, the Halifax is quoting £161,731 and Nationwide £165,798.  Rightmove advised potential sellers that the only way to sell an average house is to market it at a ‘below average’ price.  It said that four years into the downturn, it is clear that it still has some way to run, with more difficult times ahead.  The site also said that the UK property market is extremely splintered.

Rightmove director, Miles Shipside said: “It is clear that in these turbulent times the UK housing market is made up of micro-markets that are performing very differently. Those that are involved in buying or selling next year need to understand their local market dynamics to help them deliver the right recipe for success. That will include gauging under or over-supply of property types, buyer demographics and mortgage profiling unemployment concerns and exposure to public sector cuts or the likelihood of external investment.”

In September, The National Association of Estate Agents reported increases in the level of demand for property, number of sales to first time buyers and available residential stock.  The number of house-hunters registering with an Agent increased for a second consecutive month from an average of 304 in August to 308 in September. This is higher than figures recorded for the same period last year, when the number of enquiries reached 247.

Available housing stock also increased during the course of the month, moving up from an average of 65 to 72 properties, its highest level for three months, suggesting that many sellers believe their property can be sold in the current financial market, if priced sensibly.  Despite wider economic concerns in the European financial markets, this data indicates that UK sellers believe they will be able to secure a sale for their property, if reasonably priced.

First Time Buyers also enjoyed a slightly larger share of the overall sales market, increasing from 20% in August to 22% in September.  However, NAEA regional executives have reported that a lot of regional variation exists in the number of first time buyers getting onto the housing ladder.  The number of sales remained consistent with figures recorded in August with an average of 8 made per branch.  As with enquiry levels, house sales remain slightly above average when compared with data recorded in 2010 (September 7).

The average number of house-hunters registered per branch continued to improve, moving from 304 in August to 308 in September.  Enquiry levels increased for a second consecutive month according to NAEA Agents.  This represents a four year high where a figure of 326 was recorded in September 2007.

The number of sales agreed per branch remained the same with an average of 8 across August and September, slightly above average when compared with the same period in 2010 (September 7 sales).

Wendy Evans-Scott, President of the NAEA said: “It is encouraging to see that the number of enquiries is increasing but sellers need to be very realistic when pricing their property in order to secure a sale in what is still a very cautious market.  The number of First Time Buyers on the market has increased slightly over the course of the month, however, our Agents are reporting widespread regional variation.  Lending still remains a real barrier to home ownership for this part of the market.”

Director General of the CBI, John Cridland, has called on the Government to boost activity in the housing market, in particular by encouraging first-time buyers. 

Speaking at the September CBI North-East Annual Dinner, John Cridland said:  “As we have seen, without a steady stream of eager first-time buyers, the housing market stagnates and our whole economy suffers.  According to the Council of Mortgage Lenders, 36,200 first time buyers bought homes in the first three months of this year, compared to 43,600 in the first three months of 2010. This compares with 167,400 first time buyers at the peak of the market in 2001.

The National Housing Federation says that the average age for home buyers without parental assistance is now 37 and is expected to climb to 43 as more people struggle to raise hefty deposits.  Now is the time to stop the stagnation and get the housing market flowing again.  The CBI wants to see a revitalised Mortgage Indemnity Guarantee, to reduce the risk of ‘higher loan to value mortgages’.  One way this could be done would be through a deal between mortgage providers and house builders. There could also be a role for government to step in with some very focused support to bridge the gap.  I want to see the Chancellor use his autumn statement on November 29 to jump-start the housing market”.

Throughout August, NAEA Estate Agents reported increases in both the level of demand for property and the number of completed transactions, reflecting a better than expected summer for the UK housing market.

House-hunter levels increased for a second consecutive month, with 304 people registering with an Estate Agent in August, compared with 299 in July.  This is the highest post-recession figure recorded (previous highest figure; September 2007 was 326).  However, it is important to remember that demand is concentrated in some parts of the country and not others.

Despite a decrease in stock levels, sales remained aligned with figures recorded throughout the first half of the year, moving up from an average of 7 to 8 per month. The stability in sales suggests those sellers who remain in the market continue to price their property sensibly.  Anecdotal evidence from NAEA regional executives suggests three to four bedroom family homes have been the most appealing to house hunters.

The percentage of First Time Buyers decreased slightly from 21% to 20% between July and August.  Mortgage finance continues to prevent many first time buyers gaining entry to the housing market.  August saw a slight dip in their market share.  Assisting this part of the market is vital to gaining upward momentum that will help to grow the wider property market.

The average number of house-hunters registered per branch improved.  The NAEA recorded a second consecutive month of growth in demand for housing, its highest level since the recession ended.  The UK housing market has performed well during a month which is traditionally one of the quietest periods of the year.  Member Agents reported that the average number of sales agreed per branch increased slightly, moving from 7 in July to 8 in August.

The average number of properties available for sale per branch decreased from 70 in July to 65 in August. The number of sellers decreased slightly following the spike in supply recorded in June.  Compared with year-on-year figures, supply levels were down, that said, the fact that sales have increased slightly suggests sellers that have remained in the market are being realistic in pricing their property.

There was a surge in enquiries for property to purchase during July, according to The National Association of Estate Agents market report for July.  It showed a sharp increase in the number of house-hunters registering at its branches across the UK.

While there is some regional fluctuation, on average Agents reported 299 people on their books for the month, up from 263 in June and the highest figure in over two years (299 in May 2009). This significant increase in activity could well be attributed to the number of people choosing not to go abroad this year in favour of buying a home while there is a good selection of homes available and sellers are more realistic in pricing their properties.  An increase in the number of enquiries for second-home purchases could also have contributed to this rise, with many choosing to buy additional property for use as a holiday home in the UK.

Supply levels across the country decreased slightly with NAEA Agents reporting 70 properties available per branch, down from 74 in June.  This is still higher than year on year figures, where in July 2010 only 68 were recorded.  As is usual for the time of year, sales dropped slightly from an average of 9 per branch in June to 7 in July.  Despite the dip in the number of transactions completed during July, the increased interest in property, and a good availability of stock, will hopefully see this sales figure increase in August.

The number of first time buyers entering the housing market held strong during July compared with previous months with the   proportion of sales made to first time buyers increasing from 20% in June to 21% in July.  This is an encouraging sign given the continued economic pressures which are impacting on this part of the market in particular.

NAEA President Wendy Evans-Scott said:  “It is great to see that interest in property has reached a two year high, especially at a time when, traditionally, Estate Agents experience a lull in activity as people take a holiday abroad instead of house hunting.  It seems that people are beginning to reconsider their options when it comes to buying a property.  With many sellers now being more realistic about pricing, we hope the market will rejuvenate in the coming months.”

The housing market in June showed a significant jump in seller confidencebut reductions in house hunter levels, as the wider economic climate continued to restrict potential buyer activity.  Housing stock availability reached a two-year high with 74 properties available on average per branch, a figure last exceeded in April 2009.  In the latest set of data, supply levels increased substantially month on month from 68 properties registered in May.  This leap suggests that despite the current lull in activity amongst house-hunters, sellers are becoming increasingly confident that they will be able to secure a sale for their property.

Demand levels declined for the third month in a row, moving from 275 in May to 263 in June, which suggests that the lack of mortgage availability is still proving a major barrier to home ownership in addition to wider economic factors such as struggling consumer confidence.  Activity in this part of the market continues to be significantly down compared with year on year figures.

Sales increased in June, with the average number increasing from 8 to 9, which is significantly higher when compared with year on year figures. June 2010 saw an average of only 6 sales per branch.  More realistic pricing from sellers has provided some stability on the sales side but regional variations still remain.

The average number of house-hunters registered per branch continued to decrease from 275 in May to 263 in June.  Demand levels declined for a third consecutive month in June with house-hunters continuing to find it difficult to raise the necessary funds for a deposit on a home, in addition to wider economic factors.

The average number of sales agreed per branch increased slightly, moving from 8 in May to 9 in June.  Sales levels remained positive in June with NAEA Estate Agents reporting slight increases in the number of transactions completed on homes throughout the month.  This increase is welcome but the NAEA would like to see this figure reflect a wider spectrum of the housing market, including first time buyers.

The average number of properties available for sale per branch increased significantly from 68 in May to 74 in June.  Supply levels to the UK housing market soared last month to levels not seen since April 2009.  NAEA Agents report that a combination of sellers being more realistic about the price they expect to achieve for their property, as well as increased confidence that a sale can actually be made, has given sellers more cause for optimism.

The percentage of first time buyers declined from 24 in May to 20 in June, showing a sharp dip reflective of the continued barriers to home ownership, particularly at this end of the market.  Many NAEA regional executives report that only those generously supported by family and friends, or those who have substantial savings, seem able to secure deposits of around 20%.

President of the NAEA Wendy Evans-Scott said: “The leap in available housing stock suggests increased confidence amongst sellers.  They think there is a much better chance that their home will sell.  For house-hunters, this is welcome news as it offers a wider choice of properties to pick from.  However, efforts are still required to assist those looking to get onto the housing ladder if we are to see buyer activity match that on the sale side.”

Demand is still well above year on year data but significant improvements were hoped to have been made by now, given the expectation that the housing market was entering the recovery phase at the start of 2011.  The cumulative impact of large deposit demands, increased pressure on household finances and the ominous economic outlook is causing the market to grind to a halt.

Supply levels decreased slightly during May, moving from 69 per branch to 68, although this is still well above average for this time of year.  Housing stock levels have remained at around this point for over five months now and there is little sign of an injection of additional stock in the near future.  The Government consultation on the relaxation of planning laws on commercial to residential conversions is expected at the end of this month but it remains to be seen how long it will take for this newly converted property to have an impact on supply levels.

The average number of house-hunters registered per branch decreased from 277 in April to 275 in May.  NAEA Agents report widespread dismay amongst buyers who are not able to secure the impractical 25% deposits required by the major lenders for mortgage finance.    Although the picture varies throughout the country, access to funding to obtain this credit is, in general, proving difficult.  It is reassuring to see that this figure is above average for the time of year but we now need to see the Government acting to remove these barriers to assist those who want to get onto the property ladder.

The average number of sales agreed per branch remained the same with an average of 8 sales made across April and May.  Sales remained consistent at an average of 8 per branch for the fourth month in a row and on par with year on year figures.  Many NAEA Agents reported increased activity at both the lower and upper price ranges of the market, with many sellers in the middle reluctant to reduce their asking prices to the necessary level for a deal to be made.

The average number of properties available for sale per branch decreased slightly from 69 in April to 68 in May.  In May, housing stock levels dipped slightly which might not seem like a major issue given the current dip in demand but the two are intrinsically linked.  Many homeowners looking to sell up are reluctant to put their property on the market and instead choose to sit tight until the market picks up as many do not want to reduce their asking prices to the level required to secure a sale.  A relaxation of mortgage lending criteria, including a reduction in the deposit required to get one, would assist buyers and encourage would-be sellers to put their homes onto the market.

The percentage of first time buyers increased from 21 in April to 24 in May.  Encouragingly, First Time Buyer levels increased in May, as Estate Agents reported increased activity in the lower priced homes section of the market.  While mortgage availability is still proving extremely difficult to obtain for the housing market in general, it appears that sellers were more realistic at the lower end of the market, presumably making it easier for some house hunters to secure a deposit during the month.  The NAEA would still like to see a reversal in the government’s decision to focus on new build homes, for those entering the property market for the first time and instead focus on removing the barriers to finance that could encourage upward momentum, impacting positively on the rest of the sector.

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.  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."

The UK housing market remained resilient across April with slight increases and decreases across supply and demand.  The National Association of Estate Agents reported 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.  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.

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 levels continued to decline last month, moving from 23% in March to 21% in April. Although the same figure of 21% 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.

The average number of house-hunters registered per branch decreased from 290 in March to 277 in April.  The decrease in the level of enquiries between March and April must be viewed within the context of the many public holidays that occurred throughout the month.  Although regional variations remain, many Agents reported a ‘spike’ in activity in the build up to the Easter break which appeared to slowdown as house hunters took advantage of the Royal Wedding weekend.

The average number of sales agreed per branch remained the same with an average of 8 sales made across March and April.  Sales continued to remain stable at 8 per branch for the third month in a row which is encouraging given the decrease in overall demand for property across April.  NAEA Agents noted that the increased quality of house-hunters that remained towards the end of the month contributed to more offers being made that were subsequently accepted.

The average number of properties available for sale per branch increased slightly from 68 in March to 69 in April.  The slight boost to supply levels recorded in April also represents a significant increase on figures recorded this time last year.  Sellers have demonstrated confidence in the market that offers made by prospective buyers will meet expectations.  It is reassuring to see that should demand for housing increase next month, this can be met on the supply side.

The percentage of first time buyers decreased slightly from 23 in March to 21 in April.  The continued decrease in the number of first time buyers entering the UK housing market is disappointing but reflective of the government’s continued failure to address the growing problem of mortgage availability for this important group.

President of the NAEA, Michael Jones, said: “Although regional variations do remain, this latest report indicates that the housing market is showing some overall resilience to economic pressures.  Despite the expected lull in activity during the Royal wedding celebrations, sales remained stable.  This might well be attributed to the Easter break at the start of April, a time when our Agents saw increased house hunter activity and the bulk of their sales for the month, which could have cushioned against the drop off towards the tail end.

It is, however, disappointing to see the market share for first time buyers decrease for a second month in a row.  Although in-line with figures from this time last year, the Chancellor’s Budget, which made special concessions for this group 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 much needed upward momentum instead.”

The National Association of Estate Agents reported a surge in the level of demand for property across the country in their April market survey with the number of registered house-hunters moving from an average of 268 in February to 290 in March, its highest level in eight months and up on this time last year.  Furthermore, with the Easter holiday period fast approaching, traditionally a time of heightened activity, house hunters look to be searching for a good deal on property before the anticipated rise in overall activity.

Though the growth in enquiries should be viewed as a positive step, it is important to remember that regional variations still exist, with Estate Agents reporting higher levels of demand in some areas more than others.  The level of available housing stock remained strong during March, dipping only slightly by an average of two properties per branch.  Year on year, the number of available properties is significantly higher with 60 recorded in March 2010 and 68 last month. This suggests a continuation in the seller confidence seen in February, with more people believing that sale prices will meet expectations.

NAEA members reported that property sales remained stable throughout February and March with an average of eight transactions per branch, in line with figures from the same time last year.  Substantial capital barriers to buying remain, however, with mortgage availability and loan repayments proving a difficulty for the wider housing market.

First Time Buyer levels remained relatively stable throughout March.  Although decreasing slightly from 25 per cent of the market share to 23 per cent, this is in line with year on year figures.  To summarise, the housing market in March continued to show signs of stability with only slight decreases across stock and First Time Buyer levels, both of which are in line or above average with this time last year.

The average number of house-hunters registered per branch increased significantly from 268 in January to 290 in March.  The sharp increase in the level of enquiries reported by NAEA Agents suggests that house-hunters have renewed confidence in UK property. The figures, which indicate demand is at an eight month high and above average for this time of the year is encouraging news for the market, which is still in the tentative stages of recovery. It remains to be seen if this activity continues to rise during the traditionally busy Easter period.

The average number of sales agreed per branch remained the same with an average of 8 sales made across February and March.  Sales remained buoyant throughout March with property sales in line with year on year figures.  It is important to remember though that the picture remains very mixed with regional variations reported by Estate Agent members throughout the UK.

The average number of properties available for sale per branch decreased from 70 in February to 68 in March.  Despite the dip in supply to the market, housing stock remained strong compared with March 2010 where an average of 60 houses were reportedly available per branch.

The percentage of first time buyers decreased slightly from 25 in February to 23 in March.  First Time Buyer levels took a slight hit in March though as with the number of sales, this is still in line with figures reported in March 2010.  These house-hunters have benefited from the Government’s Budget plans which will see a focus on new-build housing although the NAEA would rather have seen incentive policies employed to encourage upward momentum that could benefit the wider market

NAEA President Michael Jones said: “We are very pleased to see that the market has remained relatively stable despite the continued economic pressures that are making life very difficult for homeowners and those looking to enter the property market.  The significant growth in demand for homes reported by our agents suggests that house-hunters are searching for a good deal on property before the traditional spike in activity over the Easter holidays. That said, the picture is still very varied across the country and significant economic barriers remain. Although the Chancellor’s Budget last month did grant some concessions to First Time Buyers, it didn’t go far enough to assist the wider property market. Rather than new build projects to help people onto the housing ladder, the government should instead be looking at ways to maximise mortgage availability.”

The UK housing market in February saw a jump in the number of people putting their house up for sale, according to Estate Agents.

The National Association of Estate Agent’s market report for February shows a year on year rise of 25% in the level of available housing stock.

The number of house hunters registering with an Agent across the country also rose to 268 per branch in February compared with 252 in January per branch, the highest level for seven months.

Sales increased across the property market in February, growing from an average of 6 to 8 per branch month on month, despite continuing consumer concern regarding interest rate rises.

The percentage of sales made to first time buyers also increased slightly from 24% in January to 25% in February.

NAEA President Michael Jones said: “To see such a significant boost in activity amongst sellers compared with this time last year is encouraging news for the UK property market. The signs are that they are being more realistic about the price they can expect to achieve when they put their house on the market. This means that, on the whole, supply can meet demand levels, meaning a more stable market, for the short term at least.

However, the picture is still very variable across the UK with agents reporting much higher growth in enquiries and stock availability in some regions than others. Undoubtedly, broader economic constraints on spending continue to impact on consumer confidence, especially at a First Time Buyer level, and the effect of the public sector cuts has yet to be fully felt.

With limited mortgage availability and the concern about a likely rise in interest rates still putting off many of the people who otherwise would be looking to buy, it is important that the government does everything it can to encourage growth at this crucial stage of the recovery process.”

Commenting on the Budget, Wendy Evans-Scott, President Elect of the NAEA said: "The Chancellor's help for first time buyers is a good gesture towards re-starting the stalling property market. However, it is nothing more than a gesture. The focus on new build properties, rather than incentives across a broader spectrum of property, means there will still be little upward momentum in the market. 

While the measures aimed at first time buyers must be welcomed, it is unlikely that they will provide the kick-start that the housing industry badly needs. The review of Stamp Duty, for which we have long-campaigned, is a positive step and we believe the Chancellor is right to address planning laws and change of property use. However, without the ability to overcome the substantial capital barriers that are currently restricting property ownership, the market will stagnate in 2011.

Such stagnation has wider implications for the economy as it restricts the flexibility of the workforce and the ability of families to own the homes they need as they grow.  Encouraging first time buyers back to the market is an important first step, but it is just that - a first step on a long road to recovery.”

The housing market showed signs of improvement as househunters returned to the UK property market in January as demand figures reached a six month high, according to the National Association of Estate Agents.  The 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 report 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% in December to 24% last month. We must ensure that their aspirations for property ownership can be met.”

Peter Bolton King, Chief Executive of the National Federation of Property Professionals which incorporates the National Association of Estate Agents recently stated: “December was an exceptionally tough month for the property market. Not only were prospective buyers struggling against the twin challenges of a lack of mortgage finance and the remnants of the recession, they also had to contend with the weather with record early snowfall causing havoc around the country.

 

The good news, however, is that January has been better than December and the question is now how we sustain this move back towards a more buoyant property market. Unfortunately, there is no quick-fix, but an increase in the levels of mortgage finance available to buyers is something I have consistently suggested to stimulate the market.

Any solution will take time and I believe whatever measures are taken, a review of the mortgage situation in this country should be of paramount importance. That said, it is encouraging that so many NAEA Agents I have spoken to have a positive outlook for the year ahead, in what is traditionally the most depressing month on the calendar. Only time will tell if we are on the road to recovery but I believe that a strong start to January, combined with positive reporting will go some way to restoring battered confidence in the market”.

The UK housing market saw a surge in the level of enquiries, both for buyers and sellers in the first two weeks of January, according to Estate Agents.

The buoyant start to the year was recorded in a poll of almost 700 Estate Agents conducted by the National Association of Estate Agents.

59% of those surveyed said that the number of house hunters registering with them during the first two weeks of January was higher than they would normally expect for this time of year.  26% said that levels were consistent with the average for January. Just 14% said things were worse than expected.

Similarly, the level of enquiries from potential sellers went up with 45% of NAEA members reporting an increase over the same period, with 36% of Agents questioned saying that figures remained steady.

NAEA President Mike Jones said: “The results of this latest survey would seem to indicate a renewed confidence in the housing market as we begin 2011. It is encouraging to see that the majority of our agents are noting an upturn on both the buyer and seller sides and those that didn’t are still reporting steady figures consistent with January of last year.

The market appears to have experienced a jump start to 2011. We are hopeful that this strong start to the year will continue into February.”

Terrible weather conditions in December exacerbated a housing market already experiencing a cyclical lull - leading to fewer sales than at any point since January 2003. However, early signs are that the first weeks of 2011 have seen a resurgence in demand and activity.

The latest market report from the National Association of Estate Agents (NAEA) found that the average Estate Agent branch sold four properties in December 2010. That is the lowest figure per Agent since January 2003, when the figure was two properties per branch. In November 2010 the average branch sold seven properties.  Sales traditionally do drop in December as many people are reluctant to buy or sell property during the holiday period.

NAEA President Mike Jones said: “December is always a slow month for Agents but there is little doubt that these figures are worse than usual. However, it is important not to read too much into it. This lack of sales can be explained by freak weather conditions, rather than any underlying problem with the market. We would hope to see a bounce-back in the next few months. Indeed, the New Year has begun very strongly and agents have reported a very busy couple of weeks that we are hopeful will continue.”

Other figures in the monthly market analysis gave cause for cautious optimism. The supply of properties remained strong at a time when a fall would have been expected. The average branch had 64 properties on its books in December, the same as the previous month.

The percentage of sales made to first time buyers increased from 19% in November to 25% in December. The number of people registering to look for property fell, from 241 in November to 227 in December.