Sales slip to lowest level in 2008

The ever optimistic National Association of Estate Agents (NAEA) has been forced to concede the property market has dramatically slowed in 2008.

According to the organisation’s latest market review, released today, each agent sold an average of just six properties in June.

This is a 17 per cent fall from the previous month, and the lowest figure recorded to date in 2008. During June 2007, agents were selling an average of 13 properties each.

This reduction in sales comes despite a sharp increase in supply.

While each agent had a portfolio of 68 properties on offer, this has subsequently increased to 94 per agent in the year to June.

Furthermore, the number of house buyers on agents' books is lower this month, with members reporting an average of 226 house buyers in June compared to 247 in May.

This is the lowest figure reported by agents in the last year.

"It is clear from NAEA members that the last few months have been a difficult time for both the home buyer and seller," said NAEA president, Chris Brown.

"Consumer confidence is still low and this can be attributed to various economic factors including the continuing rising costs of living, the credit crunch and, of course, the shackles around the mortgage market.

"Confidence needs to be restored and this can be achieved if the government, Bank of England, mortgage lenders and various other bodies work together to ease the pressure.

"We are continuing to call on the government to cut stamp duty for first time buyers and move the threshold to give people a break," he added.

However, there was one chink of light among the gloom.

First-time buyers increase their share of the market from 10.6 per cent in May to 11.8 in June – showing one small sign of a potential recovery.

"For first time buyers who have the adequate funds in place and can secure mortgages, now is a time they can operate as opportunists and take advantage of the market and the properties and prices currently available," concluded Mr Brown.

Chris O'Toole