Housing transactions rise for second month

Posted: 20 Nov 2008 12:12:25 GMT

The National Association of Estate Agents (NAEA) has confirmed that the number of homes sold has risen for the second month running in October.

Figures from the NAEA demonstrate that the typical estate agent sold seven properties in October - a marginal increase on September figures of just six per month.

Confidence in the market could be returned if such increases are sustained, although the cost of buying and selling through an estate agent will no doubt put off buyers until prices drop significantly.

Chris Brown, president of the NAEA, explained why the transactions had risen: "Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago.

"They are ripping up last year's price tags and beginning to come to terms with the new economic reality."

The Bank of England this month reduced the base rate by a third, meaning the cost of owning a house has dropped significantly.

Without estate agent fees the cost of buying could also catch up with the low prices of a mortgage at present.

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