A better balance between the number of homes for sale and the number of registered home buyers is emerging, according to the National Association of Estate Agents (NAEA).
Association member agents reported an average of 53 properties for sale per branch – up from September’s 51 and the highest number since October last year.
While supply showed signs of an increase, the number of house hunters registered per branch fell, from 406 in September to 380 in October. The average number of homes sold during the month remained static on September figures, at average of nine per branch.
The number of first-time buyers recorded fell, decreasing 6 percentage points in October compared to the previous month’s figures, to 24 per cent of total sales from 30 per cent of total sales in September.
Mark Hayward, managing director at the National Association of Estate Agents, says there is a better balance emerging between the level of demand and supply.
“However, both supply and demand is still seasonably low for October. The decrease in buyer demand and in particular the decline in first-time buyers, along with a relatively static sales market, could be a direct result of the stricter lending criteria which came into play six months ago at the end of April this year, making it harder for house hunters to access mortgage finance.”
Hayward adds: “First-time buyers will be especially more cautious about making a purchase due to the stricter lending criteria now in place, which makes it harder to secure finance. In addition, prospective interest rate rises earmarked for 2015 present another factor that will most likely affect demand further, and could particularly discourage first-time buyers.”
