The number of buyers on estate agent books tumbled over the festive season, according to new figures for the NAEA…

December is traditionally the slowest month of the year in estate agency and so the drops come as no surprise. However, consumers gave the market a particularly frosty reception this Christmas as apprehension over the effect of the ‘credit crunch’ and home information packs (HIPs) remained.

The number of properties on agents’ books remained fairly steady, with only a slight drop as NAEA members across the country reported an average of 76 properties for sale in December compared with 77 in November 2007.

HIPs hitting home

When measured against the 51 properties recorded in December 2006, the higher stock levels for Christmas 2007 may be attributed to the influx of one and two bedroom homes being rushed onto the market before the 14th December final phase implementation of HIPs.

The number of house buyers on estate agents’ books also decreased from an average of 290 registered per agent in November to just 248 in December – the lowest figure recorded by the NAEA housing market survey to date.

Whilst this decline may be partially attributed to the festive season, other factors such as uncertainty surrounding the current economic climate, including interest rates and the effect of the ‘credit crunch’, are helping to fuel buyer caution. For those choosing to enter the market now, there is plenty of opportunity.

Another rate cut needed

An NAEA spokesperson commented: “We were finally given respite over interest rates in December when the Bank of England announced a quarter percentage point drop.

“We had hoped this would be swiftly followed by another decrease in the beginning of 2008 but unfortunately have not seen one yet. The recent drop may have buoyed confidence slightly, but more needs to be done before it can be restored to healthy levels.