Rise in property interest fails to raise sales

Posted: 13 Mar 2009 11:22:50 GMT

The National Association of Estate Agents (NAEA) has highlighted the discrepancy between the number of property sales in recent months and the rise in interest registered by buyers.

While noting a 20 per cent rise in the number of buyers registering interest since January, the NAEA referred to figures from the Council of Mortgage Lenders (CML) which showed continued reductions in the number of homes sold.

The widening gap in the number of homes sold compared to interest in property points to continued problems in obtaining mortgages.

Issues of mortgage liquidity have for some time been noted as a barrier to ownership for first-time buyers, but with the recession dampening buyers' outlooks, the opportunity to buy a home is looking not just expensive but potentially dangerous.

Such news is likely to have a negative impact on buyers, who may now face longer delays to the sale of their home.

To speed up a sale, however, homeowners may wish to sell a property online, which could increase the number of buyers who see the property, and potentially even increase the bid values.

Peter Bolton King, chief executive of the NAEA, said of the situation: "It is crucial that [rising interest in buying] translates...into completed sales.

"It may be that these figures reflect the time lag between new enquiries and completions - otherwise it is damning evidence that more must be done to help first time buyers."



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