View more on these topics

Estate agents record six months of house price falls

Figures released by the National Association of Estate Agents show that the average property price in the UK fell 1.1% over the last month.

The latest decrease completes six months of falling prices.

Annually, prices were up by 4.8% the lowest annual increase seen this year as the slowdown in house prices continues.

However, a crash remains highly unlikely according to the NAEA, who are optimistic that the usual New Year upturn will lead to a more positive market in early 2005, with over 50% of agents expecting activity to pick up in January and a further 44% anticipating a revival by Easter.

The number of houses available remained high last month whilst the number of buyers dropped again to its lowest figure this year.

This shows that supply is beginning to exceed demand as properties continue to come on to the market while buyers are still playing a game of wait and see.

New instructions remain strong with sellers eager to sell their property at its maximum price.

However many estate agents currently report that business is slower with a lower number of transactions than earlier in the year; partly due to the expected seasonal slowdown approaching Christmas but also as a result of the slowdown in the market.

Reflecting the balance of the market in favour of buyers, the average percentage discount achieved off asking prices was 4.9% compared to just 2.8% six months ago.

After dropping to very low levels earlier this year, the percentage of first time buyers in the market rose again last month to 17.1%, indicating that as prices drop slightly, new buyers are finding it easier to get on the property ladder.

Richard Hair, president of the NAEA, says: The market is now in its sixth month of this price correction and although annual increases are at their lowest rate for many years, the gloom merchants are going to be left disappointed that the slowdown will not morph into a crash.

“The market is inevitably slow at this time of the year as both buyers and sellers have their minds on other matters over Christmas and New Year.

“However we remain optimistic that the traditional New Year revitalisation will perk up the market and we are expecting an upturn as buyers return and prices become stronger.

Currently, many buyers are continuing to sit on the fence in the anticipation of further drops in prices.

“Sensible asking prices are key to a successful sale as those who are buying are finding that they are in a stronger position to negotiate with the market in their favour.


Recommended

Amber joins Mortgage Promotion’s panel

Mortgage Promotions has added Amber Homeloans to its direct access lending panel.Nick Baxter, director of Mortgage Promotions, says: “Amber Homeloans sensible approach to underwriting and competitive products has always it a popular choice with mortgage intermediaries.“I am pleased that Amber Homeloans decided to give our members direct access. We now have a robust lending panel […]

TFC Commercial enters specialist buy-to-let sector

TFC Commercial has launched its buy -to- let panel for commercial brokers.Its lender panel compliments both prime and non-conforming business, caters for purchase and remortgage, includes two RAMP exclusives andnine lenders, with another lender to be announced shortly.Nick Sneddon, commercial national sales manager at TFC, says: “As a member of the NACFB we recognise the […]

Working on, not in, your business

Frances Scanlan, CEO of Knight Funding, agrees with the principle that owner-managers need to step back from the nitty gritty of the everyday running of a business and instead direct it

Blue Sky

It is critical that you understand the point I am about to make. For if you do, neither your business nor your life will ever be the same.

Newsletter

News and expert analysis straight to your inbox

Sign up