The May report from the National Association of Estate Agents showed that the housing market had remained stable from April to May, with the majority of the main indicators showing little or no movement. Britain’s housing market was largely unmoved by the election of the first coalition Government in decades, amidst increasing uncertainty over what the future holds.

At first glance, given the momentous political changes that swept the country over the course of the month, this seems surprising. However, after more careful analysis it makes sense. The number of sellers could have been expected to drop, as people decided to wait for an expected new Government announcement that Home Information Packs would be scrapped. While this did happen before the end of the month, its initial effect would not be expected until later, although enough new properties may have come to the market at the end of the month to keep figures consistent.

Looking forward, June could prove to be a pivotal month for the housing market, as the extent to which the scrapping of HIPs is felt but balanced with, as yet, unknown announcements in the Budget on 22nd June 2010.

The number of house-hunters registered per branch decreased slightly from 278 in April to 265 in May.  Demand for property fell slightly in May compared to April but remained relatively consistent with average demand over the previous six months. The slight dip may have been caused by uncertainty and conflicting reports over the direction of house prices, or alternatively could represent a decision by house hunters to wait until after the political uncertainty and the upcoming World Cup to make their move.

The number of sales agreed per branch stayed largely the same as in April with an average of 8 in May. That Agents were, on average, able to sell the same number of properties in May as they had in the previous two months is a relatively positive reflection of the state of the market. General Election months often create uncertainty that leads to a slowing of the market and this one threw up more political uncertainty than most.

The average number of properties available for sale per branch stayed the same as in April with 62 in May. For the fourth month in a row what had previously been a downward trend in housing supply has reversed. Between April and May the level of housing stock remained the same, however, given the decision by the new coalition Government in May to scrap Home Information Packs, Agents are hopeful that this figure will improve in June, as the effect of the removal of HIPs is felt.

The percentage of first time buyers stayed the same as April with 21 in May. The number of sales being made to first time buyers remained stable in May, in common with most of the key market indicators. This figure, while relatively low compared to a boom time market, is not particularly troubling and the market, in this respect, remains relatively healthy. More calls have been made for mortgage lending to improve, which may have an effect on this sector of the market.

President of the NAEA, Michael Jones said: “In a momentous political month, amid uncertainty over house prices it’s unsurprising people decided to keep calm and carry on. The reality is that the impact of the new coalition Government will not fully be felt for some weeks, although we are hopeful that the decision to scrap home information packs will boost the market. Indeed some potential sellers may have held back in May to wait until the decision on HIPs was made and will now come to the market in June. However this positive outlook is balanced by uncertainty about what is planned for the Budget later this month. The announcements made on 22 June could make the difference between a continued or indeed enhanced recovery, and a double dip recession. The housing market, like the country, is holding its breath.”

According to members of the National Association of Estate Agents, April was a positive month for the housing market. With recent increases in the numbers of sellers coming to market continuing, with up to 62 coming into the average branch last month, compared to 60 in March. That March figure was in itself the highest figure for six months. The demand for property from potential buyers has increased, challenging the received wisdom that a General Election followed by a World Cup would lead house hunters to postpone until later in the summer. It is true to say that, while there has been an increase in prospective purchasers from March to April, sales levels are slightly down on the same period last year. However, this is nowhere near the cliff edge suggested by some experts.

This phenomenon is likely to reflect the belief that a good bargain currently can be found, which is proving to be a stronger stimulus than the anticipation that conditions will markedly improve under a new Government. However, the percentage of sales being made to first time buyers fell. The level of first time buyers is now getting towards the lower end of what would be considered good for a healthy housing market. Some moves to improve the condition, particularly around stamp duty, were made in the Budget. It will be interesting to see if this has a noticeable effect in the forthcoming months, or if the constraints caused by continued tight mortgage lending are simply too much for the majority of first time buyers. All in all, however, April was a strong month for the housing market and gave continued evidence to the theory that the market has ‘bottomed out’ and is now beginning the slow and fragile journey towards recovery.

The number of house-hunters registered per branch increased from 274 in March to 278 in April. Demand for property has remained relatively consistent over the past six months, aside from an expected seasonal dip over the Christmas period in December. It is reassuring to see that for the past three months the average Agent has registered increasing numbers of potential buyers. The number of sales agreed per branch stayed largely the same as in March with an average of 8 in April. Agents have continued to agree an increasing number of sales as 2010 progresses. While this figure is still low compared to the most successful months of the past year, the overall trend suggests an ongoing recovery. This will be an interesting indicator to follow over the next three months as we see the immediate effect on demand of the political uncertainty caused by the General Election.

The average number of properties available for sale per branch increased slightly from 60 in March to 62 in April. The downward trend in sellers bringing their property to market, which characterised the last months of 2009, appears to be finished. For the past three months Agents have recorded increases, admittedly incremental, in the supply of housing. This trend reversal is crucial to the full recovery of the market and is to be welcomed. What has been interesting in recent months is that it does not appear to have coincided with house prices dropping off, which could have been expected. This is something the NAEA will continue to monitor closely.

The percentage of first time buyers decreased slightly from 23 in March to 21 in April. The number of sales being made to first time buyers, again dropped slightly in April. However, during the month, measures were introduced in the Budget to benefit first time buyers, in particular raising the threshold of Stamp Duty Land Tax. It will be interesting to note in May the effect this has had on the market. We would hope and expect this figure to increase next month.

President of the NAEA, Gary Smith, said: “A major housing trend over the past six months has continued to be the relatively low numbers of sellers coming to market. For three months, however, the number of sellers has increased steadily. At the same time demand has stayed strong, as have the number of sales being agreed. The level of first time buyers has dropped slightly, and the NAEA will push hard for more measures to help this group from the new Government. It is good to note that any potential Conservative/Lib Dem pact will be able to agree on one thing at least, as both included the abolishment of Home Information Packs in their manifestos. All of the trends reported by our members point to reasonably sunny      prospects for the summer housing market.”

March was an encouraging month for the property market with a positive number of buyers looking to sell their homes. The months figures reveal an increase in the levels of housing stock with more properties available for sale per branch. The highest value recorded over the last six months. More house-hunters also registered their interest.

The first time buyer segment of the market remained stable with a slight decrease on February figures. This brought them in line with the percentage of first time buyers on the market this time last year. The move to extend the stamp duty threshold will come into play in April and this could have an effect on the market. The improvement on February figures suggests that the market is moving in the right direction.

The arrival of Spring brought an influx of new house hunters to the market. The number of potential buyers registered per branch increased from 258 in February to 274 in March. This was a significant improvement on February and not wholly unexpected. With the bad weather now behind us buyers and sellers alike are returning to the market with a renewed vigour. Demand remains high. The lack of supply continues to be an issue, although an increase in sellers indicates this may be about to change. Regardless, house building must become a top priority over the next twelve months if we want the market to strengthen and this progress to continue.

The number of sales agreed per branch increased from an average of seven in February to eight in March. As with the growing number of house hunters registering with an Estate Agent this month, it is encouraging to see the number of sales made per Agent also increase. This demonstrates that confidence is returning to the market and that Agents are successfully able to provide property to interested buyers. The increase in house hunters registering this month is likely to further support and improve sales levels into April and May.

The average number of properties available for sale per branch increased from 56 in February to 60 in March.  Housing stock increased by 8% which is a positive outcome for the recovery of the market, especially in terms of increasing demand. This figure is the highest from the last six months demonstrating that more people are deciding that the time is right to sell their property for a good price.

The percentage of first time buyers decreased slightly from 24% in February to 23% in March. Although the findings show a slight decline in the percentage of first time buyers, this segment still makes up a quarter of the UK housing market.      Mr. Darling’s announcement to raise the threshold of stamp duty land tax for two years was a victory for thousands of first time buyers this month and it will be interesting to note the immediate effect on the market in April’s figures. More still needs to be done to help a larger percentage of first time buyers to the market. 

Stamp duty rises for properties over £1,000,000 to 5%. The number of applicants registered remains strong with demand outstripping supply, therefore current conditions are advantageous for sellers. However, with additional stock coming to the market buyers will have more choices - the pendulum swings!

President of the NAEA, Gary Smith, said: “Spring has finally arrived and brought with it a much needed boost to the housing market, particularly amongst sellers. This figure has been low in recent months and this is a welcome indication that reflects a growing confidence that the recovery is well underway.”

Despite poor weather conditions throughout February, National Association of Estate Agents members managed to increase the number of sales they agreed over the course of the month . This increased number of sales can be explained in part by a time lag between the increased number of house hunters in January settling on a house purchase in February. The level of housing stock also remained stable this month which is another positive indicator of a strengthening market. In addition to this, the first time buyer segment of the market continued to fare well, with a slight increase on last month’s figures which brought them in line with the percentage of first time buyers on the market this time last year.

The number of people registering with an Estate Agent dropped in comparison to last month’s figures. There are a number of reasons for this; the ongoing bad weather was an obvious barrier for many house hunters. February is also a tough month in terms of people receiving their credit card bills from Christmas. The realisation of the end of the Stamp Duty holiday may also be a contributory factor. To conclude, February was relatively stable and continued to suggest strength in the gradually improving housing market.

The number of house-hunters registered per branch decreased from 291 in January to 258 in February. This month’s figure is not totally unexpected. Even though it is the lowest figure recorded over the last 12 months, it isn’t a true reflection of the current level of demand. Levels are expected to pick up amongst house hunters as the weather improves.

The number of sales agreed per branch increased from an average of six in January to seven in February. Given the lull in the number of house hunters registering with an Estate Agent this month, it is encouraging to see the number of sales made per Agent increase in February.  The decline in house hunters registering this month is likely to impact on the number of sales made per branch in March.

The average number of properties available for sale per branch increased slightly from 55 in January to 56 in February.  Recent reports of house price increases from high profile organisations and financial institutions have continued to encourage sellers back into the market, increasing supply. Yet this interest will stall if house hunters find there is to be little stock available when they do show interest. Regardless of the hue of the next government, more needs to be done to make house building a top priority over the next 12 months if they want to close the gap between supply and demand.

The percentage of first time buyers increased from 23% in January to 24% in February. The findings show a gradual increase in the percentage of first time buyers which is a positive indicator of an improving market. We will continue to call for the abolishment of HIPS and review of Stamp duty as a means of making the market more open to this valuable segment of the market.

President of the NAEA, Gary Smith, said: “It’s encouraging to see that the bad weather hasn’t deterred Estate Agents from making sales this month even if it has stopped some house hunters from registering with an Agent. Figures suggest that there’s an increasing appetite for property which will feed recovery over the next few months as the weather improves. This growing confidence is reflected in the fact that first time buyers now take up a quarter of the market.  Supply and demand continues to be an issue and one we are taking up with the Government ahead of the budget. More needs to be done to make house building top priority over the next 12 months if we want the market to strengthen rather than stall.”

The NAEA stated that despite the almost unprecedented weather conditions in the first couple of weeks of January, Estate Agents, over the course of the month managed to increase the number of sales they agreed, which is a remarkable achievement. The knock-on effect of increasing sales was to further reduce the supply of housing available to buy. This is a trend which, if it continues, will put increased upward pressure onto house prices.

Demand for housing does not appear to have been hit as badly as was feared in the wake of the Government’s decision to end the stamp duty holiday. The number of people registering for new property rose strongly in January. Another encouraging sign of confidence in the market comes from the first time buyer segment who were responsible for almost one in four property sales agreed. This is a reflection that confidence in the housing market is robust and could suggest that lenders are beginning to make mortgages available to responsible borrowers.

In the months ahead we may see a slight increase in house prices caused by restricted supply but this should peter out naturally as the perception of a short-term increase in house prices persuades sellers to come to the market. To conclude, January was a positive start to 2010 and the market has defied many who predicted disaster.

The number of house-hunters registered per branch increased from 251 in December to 291 in January. The larger trend in the property market over the last 12 months has been one of fluctuating but sustained demand compared to the previous year. The degree to which the market strengthened over the course of 2009 is evidenced in a year on year comparison. In January 2009 the average Estate Agent had 242 potential buyers registered.

The number of sales agreed per branch increased from an average of 5 in December to 6 in January. After the traditional festive lull saw a drop in sales in December, it is heartening to see the number of sales made per Agent pick up again in January. While this number may not have been as large as hoped, when the disruption caused by the weather is considered it can be seen as a remarkable achievement.

The average number of properties available for sale per branch decreased slightly from 59 in December to 55 in January. Over the course of 2009 and into 2010 the level of housing stock has fallen consistently. This reflects the fact that higher levels of sales are being made than were in 2008. This trend is largely responsible for recent increases in house prices and will likely encourage that trend. However, in itself the perception of a short term increase in house prices will encourage sellers back to the market, increasing supply.

The percentage of first time buyers increased from 19% in December to 23% in January. In keeping with other positive market indicators in January, the percentage of sales being made to first time buyers increased. Almost one in four sales in January were made to first time buyers. This is a particularly reassuring statistic for Agents, as this market segment was the one many felt would be most vulnerable to the Government’s decision to end the stamp duty holiday at the close of 2009.

President of the NAEA, Gary Smith, said: “Our figures suggest that concerns expressed about the prospects for the market in 2010 may prove unfounded. This appears to be confirmed by the increased level of sales, which given the awful weather conditions is quite amazing. The dwindling housing stock on our members’ books reflected the increase in sales month on month but this is a worrying trend that, if continued, will result in further upward pressure on prices. More encouragingly, the very important first time buyer section of the market now makes up almost one in four purchases. This confirms their confidence in the market as well as their ability to obtain attractive mortgage deals.”

The greater confidence in the property market witnessed towards the end of 2009 continued over the Christmas period into the new year. In the run up to the ’festive season’, Agents were still reporting higher levels of activity than would have been normally expected for the time of the year. Surprisingly this translated into sales in the last week before Christmas and even in the traditional quiet week between Christmas and the new year.

Heavy snow falls at the beginning of the first week in January were not helpful but did not ‘kill the market stone dead’ as one might have expected. After the heaviest overnight fall of snow in our region, I abandoned my car at home and did two market appraisals ‘on foot’ at some distance apart rather than postpone to a later date. Although appearing on the door steps looking as though I had just returned from an Everest expedition, in both cases I received instructions to proceed with the marketing of the homes. Coupled with a house sale the following day it was certainly a positive start to the new year for my office!

Often the Christmas period provides the catalyst for moving home, with families spending more time together and discussing their plans for the future. There are many uncertainties ahead in 2010 that are likely to affect the property market, including the general election, the stamp duty holiday ending and the VAT increase. Let us hope the enthusiasm for moving home continues and in the early months of 2010 there is a flurry of new homes coming on the market and not  more snow!

The number of people searching for property soared by more than 25% in the twelve months to December, according to the National Association of Estate Agents.

The NAEA’s monthly market report found that the average Estate Agent had 251 house-hunters on its books in December 2009, compared with 200 in December 2008.

The number of people looking to buy had fallen from 279 in November, as expected during the traditional festive slowdown in the property market. This slowdown saw the number of sales agreed per branch drop from eight in November to five in December.

The number of properties available for sale per branch increased slightly from 58 in November to 59 in December.

President of the NAEA, Gary Smith said: "December is always a slow month for Estate Agents as house-hunters tend to take a break from their property search.

Given the usual seasonal lull, these figures are very much in line with our expectations but, nevertheless, continue to demonstrate a marked improvement on December 2008.

We are now more interested in how the market will bounce back in January, given that the Government has not responded to our requests to extend the Stamp Duty holiday, which ended in December. Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available.”