House prices 'slow in September'

Posted: 10 Oct 2006 15:42:21 GMT

An unusually high level of property market inflation in August this year has been followed by a dip in September, a new report claims.

An unusually high level of property market inflation in August this year has been followed by a dip in September, a new report claims.

Figures from the National Association of Estate Agents (NAEA) show that the number of buyers and sellers estate agents reported having on their books fell last month and was just below the figure for September 2005.

Sales rose this September compared with the previous year, but were down by 6.6 per cent on August’s figure at an average of 14 sales.

The number of buyers seeking property dropped by 13 per cent between August and September from a high of 398 in August to just 346, seven per cent below September last year. The number of sellers also fell by a similar rate, though the market remains relatively steady.

The average number of properties for sale per estate agent was at 61 last month, as supply fails to keep pace with demand.

The association predicts that a further increase in interest rates following a quarter per cent increase could have a negative impact on the market.

NAEA president, Charles Smailes, said: "There are currently fewer buyers and sellers registered with estate agents than the same time last year, I suspect a wait and see situation regarding the speculated rise in interest rates."

The Royal Institution of Chartered Surveyors (RICS) has suggested that if the Bank of England raises interest rates again next month, as widely predicted, it is unlikely to dampen Britain's property market, with consumer finance and employment rates remaining strong.

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