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House sellers returning to the market

House sellers returning to the market

Category: Mortgages

Updated: 17/03/2011
First Published: 17/03/2011

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 It is now over 6 months old so the content may be out of date.

House sellers are returning to the property market, while demand from buyers also appears to be improving.

Over the last year, the number of people putting their house on the market has risen by 25%, figures from the National Association of Estate Agents (NAEA) show.

There is also evidence the sellers are lowering their expectations about how much they can get from their home in what is still a sluggish market.

"To see such a significant boost in activity amongst sellers compared with this time last year is encouraging news for the UK property market," NAEA president Michael Jones said.

"The signs are that they are being more realistic about the price they can expect to achieve when they put their house on the market. This means that, on the whole, supply can meet demand levels, meaning a more stable market, for the short term at least."

The annual increase has been complemented by a rise in the number of house hunters and property sales.

NAEA members reported that the average number of people registering their interest in buying a home jumped from 252 to 268 in February, while the number of sales per branch increased from six to eight.

However, the positive figures are tempered by widely fluctuating figures reported by branches across the UK.

"Agents are reporting much higher growth in enquiries and stock availability in some regions than others," revealed Mr Jones.

The number of sales to first time buyers increased in the month, albeit by just 1% from 24% to 25%.

"This increase represents a step in the right direction but with news of the expected increased rate rise already affecting the mortgage market, it is essential that the banks ease up on this crucial part of the housing sector," said the NAEA.

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