April 2008

Market needs a boost — NAEA

THE National Association of Estate Agents has renewed its call for interest rates to be cut — and for the abolition of first day marketing due next month to be reviewed — following the release of their latest monthly survey of members.

The survey, covering activity in February, indicated that the plethora of external pressures exerted onto the housing market is causing buyers to be prudent.

Members reported that the number of buyers on their books, homes available and percentage of first time buyers all decreased throughout February. 

While the number of sales achieved remained static compared to the same period last year, the average difference between asking and sales price continued to widen.

NAEA president Stewart Lilly said: “The figures reported echo the current climate of confusion that is clouding the property market. 

“Inevitably, the global credit crunch, especially the US situation, has had a knock on effect, which coupled with consumer inflation, is placing continuing pressure onto the property market.

“However, we still have a long way to go before we see the difficulties of the late 1980s repeating themselves!”

“We continue to call on the Bank of England to lower interest rates to help prevent the economy slumping and to help bring back a renewed sense of optimism for consumers.

“We also trust that our new Housing Minister will recognise this factor before she ends the concession over first-day marketing concerning HIPs — another factor in the current market.”

Currently, the marketing of a property can begin as soon as a Home Information Pack is ordered, but the Government intends to end that concession on May 31 and will require that the Pack is physically complete before marketing commences.