Agents report housing market slowdown

Published: November 22, 2007

A study has indicated that fewer people are taking out mortgages and looking to buy a new home.

The latest research from the National Association of Estate Agents (NAEA) revealed a slow October housing market and that there were falls in the number of buyers on books, houses available and sales agreed.

In fact, the average number of house buyers on estate agents' books was at its lowest level in the past four years.

According to the NAEA, the data reflected the current cooling of the UK housing market. It added that banks, building societies and borrowers have tightened their lending criteria, making it harder for consumers to find the best mortgage deals.

However, the report did point out that the current situation was making it easier for first-time buyers to get on the property ladder. Their share of the market increased from 8.8 per cent in September to 9.2 per cent in October.

"The market place at present is experiencing a seasonal slowdown, which you would normally expect at this time of year. However, there are potentially delicate times ahead," NAEA president Stewart Lilly explained.

"All consumers need a period of stability in order to build up their confidence."

The minutes from this month's Monetary Policy Meeting on interest rates were published yesterday (November 21st). Experts have said that they suggest that the Bank of England is unlikely to reduce rates before the new year.