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.?