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Housing market sees traditional August slump

Housing market sees traditional August slump

Category: Mortgages

Updated: 09/09/2010
First Published: 09/09/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The housing market went through its traditional slump in August, as the number of house hunters fell.

The summer has long been the season when people suspend their plans to buy or sell property, in particular during August.

This year was no different, figures from the National Association of Estate Agents (NAEA) show, with a dramatic fall in the number of people registering to look for property.

The average number of house hunters registered at each NAEA branch fell from 292 to 250 in August, while the number of sales agreed fell from eight to seven.

Despite the falls, last month still compares favourably with August 2009, suggesting the market has strengthened somewhat over the last 12 months.

Housing stock at branches increased slightly, from 68 in July to 69 in August.

It is a similar number to this time last year, more evidence that the lack of supply that propped up house prices has subsided.

The percentage of first time buyers decreased from 26% to 21%, although this is still seen as a healthy figure.

"A drop off in activity is always to be expected in August and there is nothing in this month's figures to suggest that anything other than this cyclical pattern is to blame for slightly lower figures," said NAEA.

"September will be the telling month to give an indication as to the current strength of the market."

If you put off moving house during the summer months and are looking to get your plans back off the ground, then the Moneyfacts.co.uk Best Buy tables detail the market's finest mortgage offerings.

Buyers lucky enough to be armed with a 25% deposit can apply for a mortgage from Yorkshire BS that offers customers an eye catching fixed rate of 2.99% for two years.

For those looking to fix for slightly longer, Market Harborough BS offers a rate of 3.69% for three years.

First time buyers with a 10% deposit might want to consider a five year mortgage from Britannia at 5.89%.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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