Members of the National Association of Estate Agents (NAEA) claim the property market is stabilising but that there are still regional variations due to shaky consumer confidence.

The latest NAEA report appears to indicate that the current rise in demand for rental property will continue because it is still a tough time for first time buyers. This fact is backed up by the recent RICS letting survey which said more people are being forced to rent because they cannot afford to buy.

The number of buyers on agents’ books has dropped slightly. The association believes the drop in interest could be attributed to the current market conditions, including the effects of the credit crunch and difficulties in obtaining a mortgage. These factors are making consumers more cautious and hesitant to buy as there has been indication from sources that the market might improve. However, the number of properties for sale on agents’ books increased this month.

Chris Brown, President of the NAEA, said: “The figures from the April report suggest that the market is stable, however, consumer confidence is still dented.

Properties supply is good but buyers are being cautious.
“It is apparent from the survey results that some people are adopting a ‘wait and see attitude’, watching the market, before making any decisions. Many, especially first time buyers, will be feeling the results of the credit crunch and tighter lending leading to them being unable to move onto the ladder or up the chain.

“Some agents are also finding it difficult to stop sales falling through as people get ‘cold feet’ or fail to secure mortgages but we must remember that this happens in the best of markets.

“However, what people need to remember is that the market is stable and we are not seeing massive price drops. There are still strong economic factors at play, such as high employment and low interest rates and sales are still taking place. Moreover, people need places to live and property purchase remains a good long term investment.”

Ian Fletcher, residential director for the BPF, said: “These RICS rental survey figures highlight another impending housing crisis - soaring rents. The private rented sector has housed half-a-million people since 2000 and it's the most widely available source of affordable housing. If demand continues to rise while supply does not, those who can't buy or access social housing will have nowhere to go.

“There is therefore a desperate need to get more investment into rental housing. Large investors building new family homes specifically to let could be encouraged with minor planning and tax changes”