In a sign that the housing market is moving in the right direction, the number of houses available for buyers increased to 41 per branch in August; the highest level seen since March this year, when agents reported an average 54 properties registered per branch, according to the latest NAEA survey.
The number of sales made to first time buyers (FTBs) increased in August – from 25 per cent of total sales made in July, to 28 per cent. Year on year, this figure is up by eight percentage points, as August 2015 saw just 20 per cent of sales going to FTBs.
Two in five (39 per cent) estate agents expect demand to grow following last month’s interest rate cut, and a quarter (25 per cent) think FTBs will get more cut through as a result.
In August, the number of house hunters registered per member branch dropped marginally, to an average of 287, from 298 in July.
Last month, three quarters (76 per cent) of properties sold per NAEA member branch were for less than the original asking price – a decrease of three percentage points from July when 79 per cent of properties sold for less than asking price.
Mark Hayward, Managing Director, National Association of Estate Agents (NAEA) says: “Following a few months of uncertainty in the market, it’s more than encouraging to see things moving in the right direction.
"Although we have seen a slight drop in demand, the fact that supply has risen means more choice for those that are looking for a new home and we can see the impact of that because the rise in sales to FTBs was higher than we normally see in August.
"News from the Treasury this month that government deposits on the Lifetime ISA can be used towards the initial deposit to secure a property and the impact of interest rate cuts will also raise confidence in FTBS that now is a good time to be looking to buy.”
