Grounds For Optimism

Monday, 2 August 2010

According to a recent survey of National Association of Estate Agent members there are grounds for optimism after this year and last year's slump in the housing market., 

Since the beginning of the year, NAEA members have seen a significant increase in demand and one third of agents have reported a 10% increase in properties coming onto the market compared to six months ago.  There appears to be plenty of buyers out there and agents are registering an average four househunters to every available property.  The average branch has 69 properties on its books and has sold an average of 10 properties in one month - a 30% increase on the same  time last year and double that sold on average in August 2009.  A leading Estate Agency group revealed that new applicant levels are now at 86% of thos recorded at the height of the property market in 2007.

In addition, there has been a gradual pick-up in the number of new homes being built.  According to the NHBC there has been a rise in applications for new starts for the third rolling quarter in a row. 

There are also signs that headcounts are on the rise in Estate Agencies in London and the south-east.and what happens in London is a good portent as London usually leads the way to recovery.

Other indications are that London agents are starting to recruit again and software firms have reported a rise in the number of users per branch.  

Major concerns are job security and the lack of liquidity in the lending market and banks and building societies need to be pressed to do all they can to aid the recovery.

The indications, though, are that there is a continued recovery of confidence and growing activity in the property market and with mortgage interest rates at low levels and house prices currently far more realistic that in previous years, home ownership looks set to lead the way out of the recession.

English Rose Properties
August 2010