Renewed confidence in the UK property market

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by Kay Murchie

According to the National Association of Estate Agents (NAEA), there is renewed optimism in the UK property market.

In its housing market survey for January, the organisation established that sales, buyers and housing stock all increased in the month.

Housing stock rose from an average of 76 properties per agency in December to 83 properties per agency in January, said the organisation.

Furthermore, buyer numbers increased with an average of 276 registered buyers per agent in January, compared to just 248 in December. Sales also increased per agent, from 5 in December to 8 in January.

Stewart Lilly, NAEA’s president, said it is very encouraging to see the New Year start optimistically as buyers and sellers make a welcome return back to the market.

The 2 cuts in interest rates seem to have had an impact in boosting consumer confidence and the market has started to stabilise and a renewed sense of optimism has set in, concluded Mr Lilly.

In related news, research from estate agent Spicerhaart shows that first-time buyers are returning to the market. The agent reported a 2% increase in first-time buyers last month. Currently, 30% of property purchasers are first-time buyers.

Steve Cox of Spicerhaart said first-time buyers are being encouraged by the reductions in interest rates but are not being deterred by the need to put down a larger deposit. This sort of confidence is essential in reigniting the property market.