A reduction in house prices has seen a growth in demand for housing, Clear Property Investment is aware.

It is in fact the biggest jump since June 2010 according to a report by the National Association of Estate Agents (NAEA). They say that over the two months (ie October to November) the number of people looking for a house increased from 218 to 241. Despite this, the number of properties available had dropped slightly.

 "There is clear evidence of demand for property in the UK housing market," Michael Jones, president of NAEA told FT.com. "Given the restrictions on mortgage lending and the approach of Christmas, the true level of demand is probably higher than indicated by figures."

Mr Jones said the sales figures were more or less ‘constant' and said the decline in the number of properties available was probably due to the festive season. "People don't like to uproot their families during holidays," he added.

"Also, some sellers in our experience continue to have unrealistic expectations over the value of their property. These potential sellers are likely to be holding back in the hope of price rises during 2011. However, we believe that prices are likely to remain reasonably stable for the next 12 months, dependant on interest rates remaining low."

When it came to first-time buyers, NAEA, like the rest of the housing market, revealed a decline at four per cent. This was blamed on tight mortgage criteria including demands for large deposits of from 25 to 40 per cent in some cases.

Meanwhile, as many first-time buyers turn to renting and saving, Scotland's Royal Institute of Chartered Surveyors reported that within the third quarter (ie Aug to Oct) 39 per cent of surveyors reported a rise in rents. This is due to an increased demand - the largest increase in demand since 2008.

The net result of this is fewer voids for landlords and very fast renting out of properties.

Jeremy Leaf, RICS spokesman confirmed rents were continuing to rise with supply failing to keep up with demand.

He added: "There are increasing indications that more landlords are recognising these benefits and looking to add to their portfolios - especially as there has been a rise in the number of providers willing to offer investment mortgages in recent months."

For more information on property and investing please contact any of our Clear Property Investment team who will be delighted to chat with you.

  

 

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