A climate of confusion continues to cloud the property market, claims the NAEA…

Recent figures from the monthly housing market indicate that the plethora of external pressures exerted onto the market is causing buyers to be prudent, leading to what the NAEA calls a ‘dull market’.

NAEA members reported that the number of house buyers on books, houses available and percentage of first time buyers decreased throughout February. And whilst, the number of sales achieved remained static with last year, the average difference between asking and sales price continued to widen.

NAEA President, Stewart Lilly commented: “The figures reported in February echo the current climate of confusion that is clouding the property market at present. 

“Invariably, the global credit crunch, especially the US situation, has had a knock on effect, which coupled with consumer inflation, is placing continuing pressure onto the property market. However, we still have a long way to go before we see the difficulties of the late 1980s repeating themselves!”

Vast regional differences

Mr Lilly Added: “We are aware that there are vast regional differences that still exist in the market around the UK with areas such as Central London and a few other major cities continuing to keep up a regular pace, whilst some other areas may be patchier and even extremely slow, overall the market remains steady despite many external pressures.

“It is disappointing to see that the percentage of first time buyers took a drop this month however, we are hopeful that this sector of the market will recover and continue to grow as prices reflect the prevailing market conditions. The market is much more favourable to this target market.”

“We continue to call on the Bank of England to lower interest rates to help prevent the economy slumping and to help bring back a renewed sense of optimism for the consumers. We also trust that our new Housing Minister will recognise this factor before she brings in ‘first day marketing and HIPs - another factor in the current market”