The number of would-be buyers registering with estate agents is still struggling despite a fillip at the turn of the year, new figures suggest.
Numbers from NAEA Propertymark show that there has been an increase of more than a third (37%) in the number of prospective house hunters registering with agents between January and December.
The average number of registrations per branch was 367, up from 268 per branch in December.
The number of registrations in January was also the highest figure since last September when there were 394 would-be buyers registered per estate agent branch.
However, it was still down 13.6% on January last year, when there was an average of 425 registrations per branch.
The supply of available properties also increased to 36 per branch on average, from 33 in December.
The figures are based on 1,502 branches across the UK.
Meanwhile, the professional body said that first-time buyers have struggled to secure properties since the re-entry of buyers and sellers into the property market at the turn of the year.
Sales among first-time buyers as a proportion of overall sales fell to 27% in January, down from 32% in December.
NAEA Propertymark said the change was a sign of increased competition, with more buyers in the market.
Mark Hayward, chief executive of NAEA Propertymark, said: “As we usually see in January, buyers and sellers have re-entered the market after the festive slow-down and triggered an uplift in the number of sales agreed.
“While this is good news for the market generally, the increased competition seems to have affected FTBs, who generally have less bargaining power when it comes to bidding for properties.
“Our members have noticed FTBs holding off on making purchases typically outside of London, and saving for longer to maximise the full Stamp Duty relief.
“They’re skipping the ‘first time home’ and moving straight onto their second homes, to avoid growing out of their property in four or five years and facing the cost of Stamp Duty.
“This is a smart move and an example of how FTBs are making legislation work to their advantage.”
Comments (3)
I would be interested to know if the downturn in mostly around London. The North East appears to be booming, housebuilding going on everywhere, our Conveyancing department is very busy. Maybe I have just answered my own question, Buyers going straight to the builders as not much second hand stock available and huge incentives from the builders.
All builders that I’ve seen report recently have been very positive in their announcements on current trading.
Stock levels have been low in the second hand market but new listings do seem to have increased on this time last year. The figures above suggest ‘would be buyers’ are down on this time last year.
Perhaps there’s a trend away from second hand properties? I know when we bought recently EPC ratings were more in our minds than they have ever been but that might just be me. As an investor I’d certainly think twice about buying a property with a low EPC rating. One new-build we looked at was too small for us but had been vacuum tested and had an EPC ‘A’ rating.
I’d be interested to know what Estate Agents think.
Please, please can we just get back to NAEA and ARLA. I know they are not that well known but I see today in the Telegraph that there is no mention or propmark, just NAEA.
Well done The Telegraph.
Mind you it is clear that all Eye readers seem to be ignoring the post anyway. I seem to be the first to comment at 9.15!
Remind me – What is worse than being critisised all the time – that will be- being ignored!
Please wake up please NAEA and ARLA members and see if we can get back to what we used to be – Two strong industry bodies at the head of our field.
#byebyepropmark