9
Nov
NAEA: FIVE HUNTERS FOR EVERY PROPERTY
DEMAND is exceeding supply across the UK housing market, with
estate agents registering five house hunters to every available
property.
The monthly market survey of the National Association of Estate
Agents found that the average branch had 287 house hunters on its
books in October, down slightly from 294 the previous month.
The supply of properties also fell. The average branch had 57
properties on its books in October, down from 62 in September.
This demand is pushing house prices up as the gap between asking
and selling prices fell from 10.9% in September to 8.8% in October.
This increase in demand did not translate into an increase in sales
– which dropped from nine in September to eight in
October.
Even so, a significant percentage of these sales were made by
first time buyers (22%) – more than double the number this
time last year. It should also be remembered that September sales
were at a slightly higher level than had been expected at the end
of the summer holiday.
Gary Smith, President of the NAEA, said: “There is strong
demand for property and more optimism in the housing market than we
have seen for months. This is good news for the recovery of the
market and for the UK economy in general.
“Many buyers are at the very beginning of the house buying
process and this is creating a lack of properties in the short
term. It is now up to the Government and the banks to do more to
keep the momentum of market recovery going.
"A good place to start would be for the government to extend the
Stamp Duty holiday, which mainly affects first time buyers, and is
currently scheduled to end in December.
“The danger is that this short-sighted policy could
precipitate an unwelcome pause in the housing market at the start
of the New Year. We can only hope that common sense will prevail
and that the Government will raise the lowest level at which Stamp
Duty will apply to £175,000 for an indefinite period."