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Property demand rises as prices continue to drop

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  • 10/12/2010
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Property demand rises as prices continue to drop
The number of house-hunters rose in November, as the number of people registering to sell a property dropped, new research shows.

According to the National Association of Estate Agents (NAEA), the average estate agency branch had 241 house-hunters on its books last month, up from 218 in October.

But the rise was not matched by the number of sellers, with the number of people putting their homes up for sale dropping for the second consecutive month, leaving the average branch with 64 properties.

The NAEA said that this was down to the winter slowdown and sellers lack of realism in refusing to drop the value of their property and holding back in the hope of price rises during 2011.

The number of sales agreed per branch remained unchanged for the fourth consecutive month in November, with estate agents selling an average of 7 properties per branch.

The percentage of sales being made to first-time buyers fell from 23% in October to 19% in November.

Michael Jones, president of the NAEA said: “There is still clear evidence of demand for property in the UK housing market. In fact, given the restrictions on mortgage lending and the approach of Christmas, the true level of demand is probably higher than indicated by our figures.

“These are not window-shoppers. Our agents are continuing to make sales and it is particularly pleasing to see sales figures remain constant at this time of the year,” he said.

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