House prices have started the year well, with widespread increases since January 2003, according to a survey carried out by the National Association of Estate Agents (NAEA). But the association warns that any hike in stamp duty in next month’s budget would certainly slow the market and lead to deterioration.

The survey also revealed that an overwhelming 83.25% of estate agents across the country have experienced strong increases in property prices over the last year, with less than 10% reporting prices cooling off. Almost one in five agents reported rises of more than 10% (see figure one), indicating that the market is not likely to slow in the near future. Only 5% experienced a decline, proving that house buyers still have confidence in the market and are keen to move.

Stephen Kimberley, the NAEA spokesman for Cornwall commented: “The market has started at a brisk pace for January with plenty of market appraisals, viewings and activity. Buyers and vendors seem to be very positive and motivated.”

Mike Skelton, the NAEA spokesman in Yorkshire said: “Prices have risen very strongly over the last 12 months with typical growth around 30% and asking prices are continuing to rise into 2004.”

Jim Atkins, a former NAEA President and Dorset agent added: “The property market in Bournemouth, Poole and the surrounding areas has got off to an excellent start for 2004. From the beginning of the New Year, valuations, instructions, viewings and sales agreed have all been plentiful.”

Peter Bolton King, Chief Executive of the NAEA, commented: “This latest survey is good news with buyer’s confidence restored in the New Year. Prices look to be continuing to rise fairly steadily for a while yet and the market shows no signs of collapsing this year. A further rise in interest rates would we believe, have a negative effect on the market and would be no help to the first time buyer.”