The first time buyer share of the market was at its highest for 12 months, increasing significantly to 12.5% in May from 7.9% in April, according to the National Association of Estate Agents.

This bodes well for the rest of the market as the first timers underpin the wider housing market. Stable interest rates over the past few months appear to have had a direct effect in encouraging people onto the property ladder.

The percentage of first time buyers

Sales and housing stock were up in May as was the number of people looking to buy. The time taken to sell a home has dropped significantly from the same period last year and the first time buyer share of the market is at the highest seen over the past 12 months.

Sales improved after the slight dip endured over the Easter period. Having increased by 15% in May, agents reported an average of 15 property sales per agent compared to just 13 in April. This increase in sales is particularly inspiring as it is the highest reported since March 2004 proving the stability of the housing market.

Housing stock continues to be replenished

The number of properties on estate agents books continued to replenish in May. Housing stock has been in short supply over the past few months decreasing steadily in the first quarter of 2006. A slight increase was seen in April and this has been further built upon in May increasing by 6.5% from an average of 62 per agent to 66.

This is however still down on the same period in 2005 where the average per agent in May was 81, hopefully the upward trend will continue, said the estate agents body.

NAEA members reported an average of 378 buyers on their books in May in comparison to just 68 properties for sale. Although demand continues to significantly outstrip supply, it is positive to see that housing stock has increased at a similar rate to buyers, further proving stability in the market.

The number of buyers on agent’s books saw an increase of 8% in May from an average of 350 in April. This is in keeping with an increase in the number of properties for sale at a rate of 6.5%.

The time taken to sell residential property is down significantly from the same time last year. The lull experienced during 2005 resulted in an average of 20 weeks to sell a property. In May 2006 it took just 16.7 weeks from instruction to completion, almost one month sooner than a year ago.

The difference between average asking and selling price was at 3.3% this month indicating that sellers and estate agents are recognising the benefits of a realistically priced property. The NAEA would advise homeowners to take into account their estate agent’s recommendation on value to ensure they are not pricing themselves out of the market.

Lettings market busy

The number of vacant properties decreased further in May to an average of 12 per agent from 14 in April, proving that the lettings market continues to be strong. However the time taken to lease properties was up slightly increasing from 12.9 weeks to 13.5, indicating that tenants could be being more selective and are prepared to wait for the right property.

NAEA President, Charles Smailes, commented: "Landlords in particular should note that the lettings market is becoming more competitive. Although there are fewer vacant properties on the market they are taking longer to let as prospective tenants explore all their options."

"I’m pleased to see levels of housing stock, for sale, on the increase and hope this trend continues throughout the summer months. May is traditionally the start of the busiest time of year for estate agency and these figures indicate the housing market is stable."