Property market shrinks as winter approaches

By Stephen Jones

Both buyers and sellers withdrew from the property market in October as consumers prepared for the winter slowdown.

Figures from the National Association of Estate Agents (NAEA) showed that activity levels on the market fell, with the trend expected to continue in the run up to Christmas.

Michael Jones, president of the NAEA, warned that the figures represented more than just a traditional tailing off in activity at this time of year, with the problem being worsened by sellers refusing to accept falling prices and buyers suffering from restricted mortgage lending.

There was some good news for estate agents, however, as sales levels remained at an average of 7 per branch. There was also a slight increase in the number of first-time buyer purchases – rising from 20 per cent of overall sales to 23 per cent.

Jones said: "It is reassuring that sales seem stable and we have actually seen a slight increase in the percentage of sales made to first time buyers.

"But mortgage restrictions will need to be eased if we are to see any real increases across the market moving into the early part of 2011."