NUMBER OF HOUSE-HUNTERS
The average number of house-hunters registered per branch decreased from 308 in September to 305 in October.
Demand levels dipped slightly in October compared with the previous three months as economic uncertainty both in the UK as well as the wider eurozone continued. However, compared with year-on-year data, this figure is above average (October 2010; 218).
SALES PER BRANCH
The number of sales agreed per branch remained the same with an average of 8 across September and October.
Sales remained the same for a third consecutive month and slightly above average for the time of year (October 2010; 7). However, it remains to be seen whether this can be sustained given the proximity to the Christmas holidays, which traditionally signals a period of contraction in the market.
HOUSING STOCK
The average number of properties available for sale per branch remained the same with 72 across September and October.
Stock levels held firm during the course of the month, suggesting that sellers still believe they can make a sale on their property if priced correctly.
FIRST TIME BUYERS
The percentage of FTBs decreased from 22 in September to 16 in October.
The number of sales made to this important group decreased to levels not seen in nearly three years (December 2008; 10 per cent).
This reflects the increasing struggle for this sector to get a foot on the housing ladder given the difficulty in raising a deposit.
While mortgage lending has reportedly improved over the course of this year, these figures suggest that there is still a lending barrier facing those entering the housing market for the first time, and that banks may require stronger incentives from the Government to offer mortgage finance to FTBs.
NAEA President Wendy Evans-Scott said:
“This week’s housing strategy announcement from the Government is welcome news for first time buyers.
"But our latest figures show that despite reported increases in mortgage approvals by the larger UK banks over the course of 2011, there is still a lending barrier facing those entering the housing market for the first time.
"To address this Government could ensure that banks are given clearer incentives to offer mortgage finance to the UK’s embattled first-time buyers, and also extend the mortgage guarantee for first time buyers announced this week beyond just new build homes.”
