Property Market Slowdown Continues

Friday, August 20 2004

The average property price in the UK fell marginally last month, according to the National Association of Estate Agents with the figure now standing at £207,362, down 0.11% from the previous month.

According to the NAEA?s research, annual property inflation also slowed slightly, with estate agents reporting houses have increased in value by an average of 10.3% since July of last year, down 0.1% from the previous month.

The NAEA said that estate agents across the country reported a slowdown in activity, with some quoting an average of 5% decrease in the volume of business from the same time last year. Increased interest rate rises and continued speculation over the market is thought to have led to a fall in the number of buyers and houses for sale on agents? books.

Estate agents? forecasts are downbeat, according to the research, with business activity anticipated to be down 3.8% by the end of the year, and asking prices expected to fall an average of around 1.55%.

Richard Hair, president of the NAEA , said: ‘This month?s figures and the feedback we are receiving from estate agents at the front line indicates a definite slowing down in the housing market. However, the downturn we are seeing is not as drastic as some would have us imagine, with a gentle steadying of prices and activity in what is still a strong market.?