Unsold properties at highest level for two years

10 April 2012

The stock of unsold properties on estate agents' books is at its highest level for more than two years, according to new research.

A surge of new sellers pushed the average number of houses for sale at each branch to 74 properties in June, up from 68 in May, according to the National Association of Estate Agents (NAEA).

Increased confidence that they could get a sale had encouraged sellers, the NAEA said, adding it is the highest average properties per branch total since April 2009.

Stocks have risen even though the number of sales per branch increased over the month from eight to nine.

NAEA president Wendy Evans-Scott said the increased stock offers a wider choice of properties to pick from, but she conceded the problems of getting a mortgage, especially for first-time buyers, means demand remains subdued.

The number of potential buyers registered at each branch fell from 275 to 263 over the past month and are down from 279 this time last year.

The figures back the most recent survey from property website Rightmove, which said house asking prices fell for the first time this year in July as the number of unsold properties on estate agents' books climbed.

The average asking price for a home dropped 1.6%, or £3,797, to £236,597 in July, Rightmove said.

Both organisations said the market varies from region to region, but the problem of getting a mortgage is consistent.

Richard Horner, one of the NAEA regional executives for the North, said although lenders say they have eased their criteria this is not evident currently, while even in the more buoyant South East agents say mortgage availability is patchy.

Some agents are guilty of over-valuation to tempt sellers, some of the NAEA regional executives suggested, but the real bottleneck remains at the first-time buyer level.

According to the NAEA, the percentage of first-time buyers in the market fell in June to 20% from 24% in May.

One executive in the Midlands added: "Lenders need to start to lend and relax their criteria."

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