The number of house-hunters registered per branch fell from 278 in April to 265 in May. The number of sales agreed per branch remained the same month to month at eight. The average number of properties available for sale per branch remained the same at 62. The percentage of first time buyers (FTBs) remained the same at 21 per cent.
At first glance, given the momentous political changes that swept the country over the course of the month, this seems surprising. However after more careful analysis it makes sense. The number of sellers could have been expected to drop, as people decided to wait for an expected new Government announcement that Home Information Packs would be scrapped.
While this did happen before the end of the month, its initial effect would not be expected until next month, although enough new properties may have come to the market at the end of the month to keep figures consistent.
Across most other indicators, there is, simply, too little clarity to enable people to make a straight decision as to whether or not to sell a property now or hold back. This has resulted in people broadly carrying on as normal.
Looking forward, June could prove to be a pivotal month for the housing market, as the extent to which the scrapping of HIPs is felt, but balanced with as yet unknown announcements in the Budget on 22nd June.
NUMBER OF HOUSE-HUNTERS
The number of house-hunters registered per branch decreased slightly from 278 in April to 265 in
May. Demand for property fell slightly in May compared to April, but remained relatively consistent with average demand over the previous six months.
The slight dip may have been caused by uncertainty and conflicting reports over the direction of house prices, or alternatively could represent a decision by house hunters to wait until after the political uncertainty and the upcoming World Cup to make their move.
SALES PER BRANCH
The number of sales agreed per branch stayed largely the same as in April with an average of 8 in
May. That agents were, on average, able to sell the same number of properties in May as they had in the previous two months is a relatively positive reflection of the state of the market. General Election months often create uncertainty that leads to a slowing of the market and this one threw up more political uncertainty than most.
HOUSING STOCK
The average number of properties available for sale per branch stayed the same as in April with 62 in May.
For the fourth month in a row what had previously been a downward trend in housing supply has reversed. Between April and May the level of housing stock remained the same, however given the decision in May to scrap Home Information Packs, made by the new coalition Government, agents are hopeful that this figure will improve in June, as the effect of the removal of HIPs is felt.
FIRST TIME BUYERS
The percentage of first time buyers (FTBs) stayed the same as April with 21 in May. The number of sales being made to FTBs remained stable in May, in common with most of the key market indicators.
This figure, while relatively low compared to a boom time market, is not particular troubling and the market, in this respect, remains relatively healthy. More calls have been made for mortgage lending to improve, which may have an effect on this sector of the market.
Michael Jones, NAEA President, South Wales, said:
"Sellers are very pleased with the demise of HIPs, but the expected increase in instructions is being tempered by the worries about the economic climate, and the forthcoming emergency Budget. Sales are steady, but the rental market continues to be busy.
"Landlords are waiting to see what's in store for them in respect of CGT before making any "snap" decisions about off-loading their investment properties.
"However, it appears that the underlying feeling is that the public still have confidence in "bricks and mortar" being a sound investment in the longer term."
