Estate agents predict property upturn

Estate agents predict property upturn

Estate agents have been uncharacteristically downbeat about the state of the property market in recent months, but figures released today suggest they are feeling more confident about the coming year.

According to the National Association of Estate Agents (NAEA), the average property fell in price by 1.2% last month, and finished 2004 6.4% higher than a year ago.

The figures coincide with those published today by the Royal Institution of Chartered Surveyors (Rics) which said that the property market could be in for a "mild pick-up".

Estate agents across the country have said that interest from buyers is beginning to return, and as many as 95% indicated that they expected the market to be back on a roll by Easter at the latest. More than half of estate agents said they thought an upturn would happen as early as January.

There was a slight decrease in the number of buyers and the number of new properties coming onto agents' books, but that there were more properties available than at the same time in previous years.

The NAEA reported that the slowdown in prices had lured more first-time buyers back into the market.

The group denied reports that some estate agencies had been suffering as the market slowed, and said that 80% of agents said they expected business turnover to stay the same or to increase over 2005.

Richard Hair, president of the NAEA, said: "The current downturn will prove to be short-lived and the figures.....continued below

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we are reporting this month show that annually, prices are up by over 6%, and activity is good for the time of year."

He added: "Together with the upbeat reports we are receiving from the agents on the front line, and the wider economic conditions such as low interest rates, we fully expect UK house prices to be showing positive monthly growth again by the spring."

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