The number of house sales in the UK increased slightly during October according to estate agents, showing that serious house hunters remain active in the property market.
The October 2012 Housing Market Report from the National Association of Estate Agents (NAEA) revealed the first increase in house sales in a year as parts of the property market show signs of a moderate recovery. Agents recorded an average of eight house sales per branch, up from seven in the previous month.
Mark Hayward, President of the NAEA said: “We last saw sales figures this high during a small peak of activity in October 2011. The determination of some serious house hunters to secure their property is leading to this gradual and moderate recovery in the number of sales our members are seeing.”
However, the average number of house hunters recorded by NAEA members has dropped over the same period from 275 in September to 265 in October. Compared with figures recorded in October 2011 (305), this represents a significant year-on-year decrease.
Hayward added: “This wider drop in the number of house hunters shows that general economic conditions are putting off would-be house buyers from entering the market for the first time. That said, the small increase in actual sales transactions indicates those serious buyers with suitable financial support are leading a small recovery in parts of the market.”
“This is supported by the drop seen in the number of first time buyers throughout October, from 23 per cent of all house hunters, down to a worrying 20 per cent. It is vital that first time buyers have access to mortgage finance to allow them to enter the property market. In many parts of the UK, prices are actually continuing to drop below low-points seen at the height of the recession, yet many first time buyers are still unable to access the right levels of finance to purchase their first home.”
The average number of properties available for sale per branch remained the same with 62 in September and October, suggesting many sellers are leaving their properties on the market in the hope of securing a pre-Christmas sale.
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