Property sales reach 18 month high

Estate agents sold more houses in April than in any month since October 2007, according to the latest report on the housing market from the National Association of Estate Agents.

The report reveals that the number of house hunters registered with estate agents dipped slightly from 268 in March to 265 in April , but the average estate agent sold ten properties in April, up from eight in March and a low of five in August 2008.

There was also evidence of growing choice on the market, with the average number of properties available for sale increasing from an average of 67 in March to 76 in April. The NAEA suggests that this figure is growing slowly as buyers wait to see if the housing market recovers, in the hope of getting a better price at a later date.

The report also shows that the number of first time buyers (FTBs) held strong in April with no change from March at 23% of all sales – an important figure since FTBs are often viewed as the lifeblood of the housing market.

Data on asking prices compared with selling prices shows that buyers are still haggling to get a good price in what is generally viewed as a buyer’s market. According to the report, the average selling price across all house types in April was 6.2% lower than the actual asking price.

Chief executive of the National Association of Estate Agents, Peter Bolton King, said:

“What we are beginning to see now are consistent positive indicators that have held firm or improved since the beginning of the year. Six months ago people were talking about how British people’s attitude to owning property had changed in the recession. The NAEA always said that this was nonsense, and that demand for property remained strong, but confidence in the market had gone. These figures show that this confidence is returning.”

However, new data released today from the Council of Mortgage Lenders shows that gross mortgage lending declined to an estimated £10.4 billion in April, down 9% from £11.4 billion in March and 60% from £26.1 billion in April 2008.

CML director general Michael Coogan said:

“It’s still too early to spot a clear pattern of recovery in the housing market as some commentators have suggested. Activity remains weak, and we have said we will see volatility in monthly lending figures as we bounce along at the bottom of the market. Our forecast for gross lending of £145 billion in 2009 remains unchanged.”