Property market still supported

Published: April 30, 2008

The UK property market is not in as bad shape as some recent figures suggest, according to the National Association of Estate Agents (NAEA).

Nationwide revealed that prices fell by 1.1 per cent in the month to April but the NAEA said that this figure must be looked at in context.

"We have been experiencing huge price leaps of double percentage points in the housing market in recent years so overall a one per cent drop is a tiny proportion of the rise," commented Peter Bolton King, NAEA chief executive.

He went on to point out that underlying factors are supporting the market.

Interest rates are falling, which means people can shop around to find the best mortgage deals.

"It is still important to remember that the underlying factors that support the property market remain: low unemployment, historically low interest rates and a pent-up demand for houses," continued Mr Bolton King.