Market steady in face of pressures

While the property market is going through a difficult patch, it remains "steady" and the outlook is hopeful for first-time buyers in particular, according to the National Association of Estate Agents (NAEA).

NAEA president Stewart Lilly said that drops in the number of home buyers on books and the proportion of first-time buyers were a concern, but stressed it was important to consider the broader context.

Acknowledging the "vast regional differences that still exist" he said that "overall the market remains steady despite many external pressures".

"It is disappointing to see that the percentage of first-time buyers took a drop this month," he continued.

"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."

While acknowledging that the situation was not on par with thedifficulties of the late 1980s, Mr Lilly urged the Bank of England to lower the baseline rate, which would put pressure on lenders to cut their mortgage interest rates.

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