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Property market goes into Xmas deep freeze

All housing market indicators go into reverse during run up to festivities

Nigel Lewis

Latest property market figures from the National Association of Estate Agents (NAEA) reveal how much the government’s recent increased Stamp Duty and other measures to put off landlords plus the post-EU referendum slowdown have taken their toll during the run-up to Christmas.

Almost all indicators for house sales in the UK are down, its research shows, including asking prices and the supply of and demand for property. And although this can be blamed on the traditional Xmas slowdown, it’s the most severe since records began.

Agents sold fewer properties per branch during November than in previous months, down from nine in September and October to eight properties last month.

Also, four out of five properties or 84% sold for less than the asking price during November, the highest proportion since the NAEA began gathering data in 2013. Last year the proportion was 76%.

Also, during November the number of house hunters fell by a fifth or 22% from 440 to 344 registered per branch. Supply also fell – the number of properties on agents’ books dropped from 43 to 39.

As a proportion of sales, first time buyers have eased off slightly from 32% to 29%.

property market NAEA“Following the EU referendum earlier this year, we faced a few months of low confidence from buyers and sellers, although in October the market bounced back to full form,” says Mark Hayward, managing director of National Association of Estate Agents.

“We expect this is still the case, and this month’s slow-down is simply down to seasonality; many sellers hold off until January to put their properties on the market, and likewise buyers are more inclined to start the year with a property search, rather than attempting it over Christmas.

“Also, although a large number of sales were made below asking price in November, this can also be put down to the time of year.”

December 23, 2016

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