NAEA: Buyers' market as prices slow

The UK property market continued to slow in February as a plethora of external pressures caused buyers to be more prudent.

That is according to the National Association of Estate Agents (NAEA), which argues now could be the perfect time for buyers looking for property to move into the market.

"The figures reported in February echo the current climate of confusion that is clouding the property market at present," explained NAEA president Stewart Lilly.

"Invariably, the global credit crunch, especially the US situation, has had a knock on effect, which, coupled with consumer inflation, is placing continuing pressure onto the property market."

Several key indicators are pointing toward a slowdown, finds the NAEA.

The number of house buyers on estate agents’ books dropped from an average of 276 registered per agent in January to 243 in February 2008 - the lowest recorded figure since the NAEA survey started.

There was also a reduction in choice for these buyers. NAEA members across the country reported an average of 74 properties for sale in February compared with 83 in January 2007.

Sellers were also failing to achieve top prices for their property, with buyers paying an average of 4.5 per cent less than asking prices during February.

Perhaps most importantly the number of sales per agent fell to eight – down from 13 during February 2007.

The time taken to sell a property has also taken a slight drop with an average of just over 20 weeks reported.

Both the length of time taken to sell a property and the total number of sales reflect the current climate as everyone takes stock of the market and adopts a cautious approach, argues the NAEA.

However, the picture was not one of universal gloom.

"We are aware there are vast regional differences that still exist in the market around the UK, with areas such as central London and a few other major cities continuing to keep up a regular pace, while some other areas may be patchier and even extremely slow, overall the market remains steady despite many external pressures," explained Mr Lilly.

First-time buyers also took a knock in February, claiming 11.7 per cent of sales in the market.

"It is disappointing to see that the percentage of first time buyers took a drop this month however, we are hopeful that this sector of the market will recover and continue to grow as prices reflect the prevailing market conditions. The market is much more favourable to this target market," concluded Mr Lilly.