House sales in the UK registered positive growth in February 2009 after the first-time buyers started displaying increasing interest for purchasing property since January.
According to the National Association of Estate Agents (NAEA), housing sales in the UK for February 2009 were recorded highest since February 2008, as reported by CHOICES.
The average sales figure recorded in February 2009 was eight per estate agent against a record low figure of five registered in August 2008 and highest since past one year, said NAEA. It is a good indication for the estate agents. For the first-time buyers, data for the month of February 2008 stood at 24%, more than twice the data for December 2008. Moreover, the estate agents had 74 properties on an average for sale as compared to 75 properties in February 2008, representing flatness in the housing market.
The growth in house sales was led by the promising signs reflected in January 2009, denoting a positive increase in buyers’ interest. As the savings accounts are presently yielding lower interest, higher number of people are looking forward to make investments in property.
There was strong demand in the country’s property market from first-time buyers who only required access to finance to purchase property. The overall situation appears good from buyers’ perspective but not from the sellers’ perspective.
The increase in transactions indicated that the seeds for the February’s sales growth had actually been sown in January when the demand started increasing as the buyers wanted to make the maximum benefit from the bargaining offers in the property market. However, sellers will remain cautious in the present market conditions and will probably wait for another six months waiting for the house prices to rise.
According to a Research Analyst at RNCOS, “In February 2009, house sales in the UK increased because of decline in property rates. Moreover, this new ray of hope is not just because of the surging demand but also due to easier financing. Various steps taken by the government should help in restraining the tight credit conditions which will boost the property sales in the UK.”
Related Market Research Reports:
Indian Housing Sector Analysis
UAE Construction Industry Outlook to 2012
Indian Cement Industry Forecast to 2012
