NAEA Survey Indicates Third Straight Fall in Home Demand
The National Association of Estate Agents has recently released information regarding demand within the UK housing market. Lower consumer confidence and challenges obtaining mortgage approval have been effective roadblocks to many. House demand has fallen for the third straight month in June.
June also saw the number of potential buyers registered with real estate agents fall by 12, to 263. On the other side of the housing market, the average number of available properties per real estate agency has gone up to almost 75, which is the highest amount since the spring of 2009.
The NAEA commented on the shortage of mortgage loans, saying: “Lack of mortgage availability is still proving a major barrier to home ownership in addition to wider economic factors such as struggling consumer confidence.”
Even though lenders have been sent a clear message by the government to lend more to the general public, first time buyers are still having difficulties reaching the first rung of the property ladder due to the required deposit levels. First time buyers represented only 20% of all buyers in the month of June. This is down from 24% in the month prior.
Richard Horner, an NAEA executive, commented on the market, saying: “Confidence in the market is fragile. Job insecurity is also destabilizing market conditions.”
The Bank of England chose to leave the base interest rate at the historically low level of 0.5% a few weeks ago. This should increase the chance of consumer confidence to increase faster in the coming months.