The housing market is slowing with estate agents reporting a decrease in business activity and steadying in prices, according to this month’s survey from the (NAEA).

Estate agents are expecting the housing market slowdown to continue for the rest of 2004 as the market levels itself out from the staggering rises seen in the last few years.

Estate agents are now expecting business activity to be down around 3.8% for the rest of the year, with asking prices expected to fall an average of around 1.55%, according to the NAEA.

The average property price in the UK fell marginally last month, according to NAEA figures. Annual increases slowed slightly with estate agents reporting house prices on average 10.3% higher than twelve months ago but 0.1% lower than last month.

Esate agents are reporting an average 5% decrease in volume of busines from the same time last year as both buyers and sellers react to further interest rate rises and speculation about the future of the market by staying put.

Those still buying or selling a property are noticing that the process is taking longer with an average of 13.4 viewings before a sale is secured (up from 12.8 last month) and approximately 12 weeks between instruction and sale (compared to 7 weeks in June), indicating buyers’ caution, says the NAEA.

Richard Hair, President of the National Association of Estate Agents, comments: “This month’s figures and the feedback we are receiving from estate agents at the front line indicates a definite slowing down in the housing market."

"Both buyers and sellers are starting to exert caution following further rate rises and warnings about the future of the market. However, the downturn we are seeing is not as drastic as some would have us imagine, with a gentle steadying of prices and activity in what is still a strong market.”