House-hunting in January hits record high

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by Kay Murchie

In spite of reports of monthly consecutive property price falls, the number of people searching for a home hit a record high last month, according to research from property website HotProperty.co.uk.

Recent reports have noted a fall in consumer confidence in the UK property market but the property website saw 1,865,155 visitors in January, an increase of 32% compared with January 2007.

Shawn Luetchens of HotProperty said last month was the highest traffic we have ever experienced, proving that buyers are regaining confidence and are actively searching for properties.

It would appear that negative reports and slowing house price growth have not deterred people, added Mr Luetchens.

Furthermore, estate agents seem unconcerned with the decline in property prices with 72% of agents more confident in the market in January than they were in December.

Many believe that now is a good time to buy, particularly for first-time buyers as further cuts in interest rates are expected this year, said Mr Luetchens.

However, several analysts are warning that the market may be some way away from total recovery.

Neil Parker of The Royal Bank of Scotland said that the UK economy faces a number of challenges in the coming quarters following the credit squeeze, the sub-prime mortgage crisis and a predicted global economic slowdown.

Mr Parker continued over the past 6 months the UK property market has already seen a considerable slowdown in activity and prices have fallen by about half the amount we expect them to fall overall.

However, a reversal could be just around the corner said Mr Parker. The Bank of England has started the process of cutting interest rates and Chancellor Alistair Darling has recently made some encouraging comments regarding a loosening of the fiscal purse strings, concluded Mr Parker.