Gap Between Asking And Selling Price Narrows

The number of house hunters registered per branch decreased from 294 in September to 287 in October, according to the National Association of Estate Agents (NAEA).
The number of sales agreed per branch of estate agents decreased from an average of nine (8.5) in September to eight (7.7).
The average number of properties available for sale per branch fell from 62 to 57.
The percentage of first-time buyers (FTBs) fell from 26 per cent to 22 per cent.
The gap between asking and selling prices decreased from 10.9 per cent to 8.75 per cent.

NAEA Calls For Government To Extend Stamp Duty Holiday

Gary Smith, President of the NAEA, said: "There is strong demand for property and more optimism in the housing market than we have seen for months. This is good news for the recovery of the market and for the UK economy in general.

"Many buyers are at the very beginning of the house buying process and this is creating a lack of homes for sale in the short term. It is now up to the Government and the banks to do more to keep the momentum of market recovery going.

"A good place to start would be for the government to extend the Stamp Duty holiday, which mainly affects first time buyers, and is currently scheduled to end in December.

"The danger is that this short-sighted policy could precipitate an unwelcome pause in the housing market at the start of the New Year.

"We can only hope that common sense will prevail and that the Government will raise the lowest level at which Stamp Duty will apply to £175,000 for an indefinite period."

View the NAEA Housing Market Report October 2009