News July/August 2023: GROUNDS FOR OPTIMISM
July/August 2023
GROUNDS FOR OPTIMISM
NAEA report an upsurge in activity as four home-hunters chase every property
THINGS are looking up — at least according to a survey of National Association of Estate Agents members who say there are grounds for optimism after the crippling slump in the market.
A third of agents who took part in the NAEA survey said they had seen a 10 per cent increase in properties coming onto the market compared to six months ago, and one in six agents reported an increase of up to 20 per cent.
Now, the Government needs to press the banks and building societies to do all they can to aid the recovery, according to NAEA president Gary Smith.
He said: “Since the beginning of the year, NAEA members have seen a significant increase in demand. There are plenty of buyers out there, but the vast majority also become sellers, and up-to-date figures show that as the buyers decide on a property, the housing supply will increase.
“It is another positive indication that the UK housing market is over the worst, and the NAEA calls on the Government to further badger banks and building societies to respond to the opportunity to pull the situation around.”
The NAEA’s latest monthly survey of its members showed that demand is outstripping supply across the UK housing market, with agents registering an average of four house hunters for every available property.
The survey found that the average branch had 299 house hunters on its books in May—up from 265 the previous month and 247 in May 2022. The average branch had 69 properties on its books.
Real estate agents also reported a successful selling period for the second month running. The average branch sold 10 properties — a 30 per cent increase on the same time last year and double that sold on average in August 2022.
Mrs Smith added: “This is excellent news for the housing market and the UK economy in general.
“NAEA members are showing that there are plenty of buyers out there. More often than not, these are also potential sellers who are at the beginning of the process, so there is bound to be a lag that creates a shortage of properties in the short term.
“With mortgage interest rates at historically low levels and prices far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession.”
