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Report shows buyer confidence surging back to the market

Wednesday 2nd November 2016

Data from the National Association of Estate Agents (NAEA) has revealed that demand for housing increased by 16% in September, defying the gloomy post-Brexit forecasts.
 
In fact, buyer confidence is now back to pre-Brexit levels, with the NAEA's September Housing Market Report showing that the average number of house hunters registered per member branch grew from 287 in August to 333 in September. This represents an increase of 16% and means the number of potential buyers recorded is now back to the levels seen in June, before Britain voted to leave the EU. 
 
On the other hand, sales to first-time buyers witnessed a fall, dropping from 28% in August to 23% in September. This was the lowest level since November last year. 
 
According to the NAEA's report, sales to first-time buyers hasn't been impacted by Brexit, with just 12% of agents witnessing a stall in sales since June's vote. By contrast, 41% have seen no change in first-time buyer activity since the EU referendum result was announced. 
 
The supply of properties, meanwhile, saw a slight fall in September, down from 41 per branch in August to 40. The number of sales agreed, however, increased by 12.5% in September to an average of nine per branch.
 
“This month’s report proves that buyer confidence is growing, which is obviously reassuring, given that we expected uncertainty following Brexit,” Mark Hayward, Managing Director of the NAEA, said.
 
“Although supply has dropped marginally, this does not concern us as it’s still higher than the levels we saw between April and July. However, it is worrying that the number of sales being made to FTBs has fallen to the lowest number in 10 months. The fact the Government’s Help to Buy housing scheme is due to close this year might pose more of a challenge for those who were relying on this to help get their foot on the property ladder.” 
 
He added: “We now look ahead to the Autumn Statement and look forward to seeing what plans the Government puts in place to assist FTBs towards their goal of homeownership.” 
              

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