In its predictions for the UK property market over the next 12 months, the association said that supply will remain stable in the run up to the General Election, after which there were likely to be more houses available for sale, particularly if Home Information Packs were scrapped.
Peter Bolton King, chief executive of the NAEA, explained: “In recent months the market has witnessed a slight increase in housing prices, driven largely by the fact that, in some markets, demand is outstripping supply. If more property comes onto the market the house price rise will flatten or, in some cases might fall slightly over the first six months of the year.”
It forecasted the General Election will cause a lull in activity as people adopt a “wait and see” approach and said the ending of the Stamp Duty holiday has the potential to reverberate around the market.
Bolton King said there had been encouraging levels of first-time buyers throughout 2009 and he hoped this would continue into 2010.
He added: “However, the situation with lending will have an impact. The NAEA believes that responsible lending to responsible people is crucial to any recovery.”
