UK sellers are struggling with increasingly tentative buyers, claims the NAEA…

Published 27th May 2008

The NAEA’s latest report reveals that elements of the market are actually ‘stabilising’, but a ‘dislocation’ remains between asking prices and actual and sales prices.

Chris Brown, President of the NAEA, explained: “The figures from the April report suggest that the market is stable, however, consumer confidence is still dented. Properties supply is good but buyers are being cautious. It is apparent from the survey results that some people are adopting a ‘wait and see attitude’, watching the market, before making any decisions.

“Many, especially first time buyers, will be feeling the results of the credit crunch and tighter lending leading to them being unable to move onto the ladder or up the chain. Some agents are also finding it difficult to stop sales falling through as people get ‘cold feet’ or fail to secure mortgages but we must remember that this happens in the best of markets.

Strong economic factors at play

He added: “However, what people need to remember is that the market is stable and we are not seeing massive price drops. There are still strong economic factors at play, such as high employment and low interest rates and sales are still taking place. Moreover, people need places to live and property purchase remains a good long term investment.”

The report also highlighted the overall decline in house hunters on agents’ books. NAEA members reported an average of 237 house buyers on estate agents’ books in April compared to 249 in March 2008.

Mr Brown concluded: ”The drop in interest could be attributed to the current market conditions, including the effects of the credit crunch and difficulties in obtaining a mortgage. These factors are making consumers more cautious and hesitant to buy as there has been indication from sources that the market might improve”.

Source: ' themovechannel '

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