|
House hunters may have a better chance of finding their dream home, with the average number of properties available for sale per branch up by 11 per cent on the previous month, the greatest percentage increase in almost three years, according to the National Association of Estate Agents (NAEA).
The NAEA’s July Housing Market Report shows that the average number of properties
available for sale per branch increased from 46 properties last month to 51 in July, the
highest number of available properties since November 2013.
At the same time, competition among house buyers could be easing. The average number of house hunters registered per branch shrank from 371 in June to 368 in July, and has been declining month-on-month since April 2014. However, the number of registered house hunters still remains significantly higher than the same time last year (July 2013), when only 250 house hunters per branch were counted.
An additional positive for house buyers in July has been agreed sale prices. A whopping two-thirds (66 per cent) of homes in July were sold for less than the asking price, a sharp contrast to May when only 46 per cent of properties sold for less than the asking price. Furthermore, only four per cent of homes were sold above the asking price in July, compared to 19 per cent in May.*
The increase in housing supply and the steady decline in the number of registered house hunters could be a direct result of high stamp duty rates faced by many potential buyers. Almost 90 per cent of NAEA members said that stamp duty either frequently (36 per cent) or occasionally (50 per cent) deterred house buyers from moving. A massive 92 per cent of members believe the Government should reform stamp duty land tax.
Mark Hayward, Managing Director of the National Association of Estate Agents, said: “The lack of housing supply has been a significant issue over the last few months, so the sign of increasing stock is positive for the market and house buyers in search of their ideal home. Another positive for house hunters are the recent reports suggesting house prices are on the decline; our NAEA report has found similar, with a significant amount of homes being sold at less than the asking price. This not only signals an appetite for movement in the market, but is also positive news for current house buyers, especially when faced with the prospect of potentially having to pay higher rates of stamp duty for higher priced houses.”
The number of First Time Buyers in July remains static, accounting for 20 per cent of sales as recorded in June. However, despite decreasing house hunters and a stagnant First Time Buyers’ market, sales were unaffected, remaining consistent from the previous month with an average of nine sales per branch in July.
Editor Notes:
All figures from the NAEA’s July 2014 Market Report
* Above / below asking price question is asked every other month, so July figures compare to May’s report. All other figures compare to June’s report
The report can be downloaded here
For further information contact:
NAEA PRESS OFFICE
Tel: 020 7566 9777
E-mail:propertyprofessionals@lansons.com
About NAEA
The National Association of Estate Agents (NAEA) is the UK’s leading professional body for estate agency personnel, being part of a group representing 13,000 members who practice across all aspects of property services both in the UK and overseas. These include residential and commercial sales and lettings, property management, business transfer, auctioneering and land. The NAEA is a sister organisation to the Association of Residential Letting Agents (ARLA).
NAEA is dedicated to the goal of professionalism within all aspects of property, estate agency and land. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service for all property matters. Both NAEA and ARLA members are bound by a vigorously enforced Code of Practice and adhere to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Associations.
|
