Their latest Housing Market Report reported a drop in the average number of properties available per member branch in February, falling from an average of 45 in January to 43 in February. Moreover, this is the fifth consecutive drop experienced in supply of properties coming on to the market, which means the supply of properties are now at similar levels seen a decade earlier in 2004 (May 2004; 40).
However, despite the lack of properties in the market, the average number of sales agreed per branch continued to improve, up from an average of eight sales per branch in January to nine in February.
The number of FTBs entering the market has also continued to improve with nearly a third (29%) of all homes sold by NAEA member agents being sold to FTBs in February. However, these figures were recorded alongside a decrease in the in the total number of house hunters, with the average number registering with member agents down 6.2%, from 353 in January to 331 in February. This resulted in the average number of buyers per property remaining the same at eight, as both supply and house hunter numbers contract.
NAEA agents also reported that the percentage of properties sold to people purchasing a house using the Help-to-Buy equity loan scheme remained the same month-on-month at an average four percent.
Once again the 31 to 40 year olds remained the most popular group purchasing property, making up half of the buyers seen in February. NAEA agents also reported one in five (22%) home buyers were looking to re-locate, while the average length of time it takes to buy a property in the UK is 11 weeks – from sale agreed through to completion.
Jan Hÿtch, President of National Association of Estate Agents, said:
“The housing market remained strong in February with first time buyers continuing to turn out in force. As confidence in the housing market continues to rise, NAEA agents expect the number of first time buyers to remain strong.
This confidence may be increasing, but the lack of properties entering the market has slowed considerably and is a real concern that needs to be addressed now – particularly for those already on the housing ladder who want to move onwards. With Help-to-Buy making it easier for new purchasers with low deposits to buy a home, the appetite for buying in this price range, combined with the diminishing supply of first time buyer properties, could drive property prices up further in this sector.”
