With the number of registered house-hunters moving from an average of 268 in February to 290 in March, its highest level in eight months and up on this time last year (March 2010; 274).
Furthermore, with the Easter holiday period fast approaching - traditionally a time of heightened activity - house hunters look to be searching for a good deal on property before the anticipated rise in overall activity.
Though the growth in enquiries should be viewed as a positive step, it is important to remember that regional variations still exist, with estate agents reporting higher levels of demand in some areas more than others.
The level of available housing stock remained strong during March, dipping only slightly by an average of two properties per branch. Year on year, the number of available properties is significantly higher with 60 recorded in March 2010 and 68 last month.
This suggests a continuation n the seller confidence seen in February, with more people believing that sale prices will meet expectations. NAEA members reported that property sales remained stable throughout February and March with an average of eight transactions per branch, in line with figures from the same time last year.
Substantial capital barriers to buying remain, however, with mortgage availability and loan repayments proving a difficulty for the wider housing market. First Time Buyer levels remained relatively stable throughout March. Although decreasing slightly from 25 per cent of the market share to 23 per cent, this is in line with year on year figures.
To summarise, the housing market in March continued to show signs of stability with only slight decreases across stock and First Time Buyer levels, both of which are in line or above average with this time last year.
NUMBER OF HOUSE-HUNTERS
The average number of house-hunters registered per branch increased significantly from 268 in January to 290 in March. The sharp increase in the level of enquiries reported by NAEA agents suggests that house-hunters have renewed confidence in UK property.
The figures, which indicate demand is at an eight month high and above average for this time of the year (March 2010; 274) is encouraging news for the market, which is still in the tentative stages of recovery. It remains to be seen if this activity continues to rise during the traditionally busy Easter period.
SALES PER BRANCH
The average number of sales agreed per branch remained the same with an average of 8 sales made across February and March.
Sales remained buoyant throughout March with property sales in-line with year on year figures. It is important to remember though that the picture remains very mixed with regional variations reported by our estate agent members throughout the UK
SALES PER BRANCH
The average number of sales agreed per branch remained the same with an average of 8 sales made across February and March. Sales remained buoyant throughout March with property sales in-line with year on year figures.
It is important to remember though that the picture remains very mixed with regional variations reported by our estate agent members throughout the UK
HOUSING STOCK
The average number of properties available for sale per branch decreased from 70 in February to 68 in March.
Despite the dip in supply to the market, housing stock remained strong compared with March 2010 where an average of 60 houses were reportedly available per branch. The proposed relaxation of the rules governing change of use from commercial to residential property represents a positive step for long-term housing supply.
FIRST TIME BUYERS
The percentage of first time buyers decreased slightly from 25 in February to 23 in March. First Time Buyer levels took a slight hit in March though as with the number of sales, this is still in line with figures reported in March 2010.
These house-hunters have benefited from the government’s Budget plans which will see a focus on new-build housing although the NAEA would rather have seen incentivisation policies employed to encourage upward momentum that could benefit the wider market
NAEA President Michael Jones said:
“We are very pleased to see that the market has remained relatively stable despite the continued economic pressures that are making life very difficult for homeowners and those looking to enter the property market.
“The significant growth in demand for homes reported by our agents suggests that house-hunters are searching for a good deal on property before the traditional spike in activity over the Easter holidays.
“That said, the picture is still very varied across the country and significant economic barriers remain. Although the Chancellor’s Budget last month did grant some concessions to First Time Buyers, it didn’t go far enough to assist the wider property market.
"Rather than new build projects to help people onto the housing ladder, the government should instead be looking at ways to maximise mortgage availability.”
