New figures from the National Association of Estate Agents
(NAEA) have shown that although the housing market in the
UK is still performing well, buyers are adopting a more
cautious approach to property investment.
The group reports that during the course of April, there
was a stable performance in terms of the number of sales,
viewings and average sales prices. According to the NAEA,
the average number of viewings before a house was purchased
was said to stand at 14. It asserts that while this is
indicative of consumers being cautious about which property
they invest in, the figure stands just two viewings higher
than results from 2007.
For those who have found a desired property and are looking
to find backing for a down-payment taking out a personal
loan might be of use in providing the funding necessary to
make an offer. However, statistics from the group suggest
that there is a slight dip in the number of people who are
looking to buy a house. Looking at the average number of
buyers on its members' books, the NAEA notes that while in
March there were 249, in April that figure dropped to 237.
It attributes this fall in part to constrained market
conditions arising from the credit crunch and a reduction
in mortgage approvals.
The NAEA asserts that while this has likely knocked
consumer confidence, there are signs that market conditions
will improve in the coming months. Although some analysts
have predicted a sharp decline in house prices, the
association insists that such a drop is unlikely because
other strengthening factors such as low unemployment, high
interest rates and sustained spending are still prevalent,
which the group suggests will buoy the property market.
Chris Brown, president of the NAEA, commented: "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."
The statistics also showed that sales in the market remain
stable despite tightened conditions, with each NAEA member
selling an average of seven homes during the course of
April. Such a figure has remained relatively unchanged
since January of this year, the association asserts.
For those who are keen to enter the property market but
have experienced difficulty raising the cash to put an
initial payment down, taking out a secured loan may prove
an effective course of action. A cheap secured loan may
also be of use to those people who were recently revealed
to be struggling to meet mortgage payments. The Royal
Institution of Chartered Surveyors has suggested that a
growing number of people will be at risk of repossessions
in the coming months.
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Abbi Rouse writes for AllAboutLoans.co.uk, a loans
comparison site, visit us today for information on all loan
topics including tenant loans applications and self
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