Number of homes for sale increases

The traditional seasonal slump in the housing market did not prevent the first increase in the number of homes for sale for the first time in four months during August, research has shown.

A typical estate agent had 59 properties on their books during July, but this increased to an average of 64 during August, the first rise since April, according to a National Association of Estate Agents (NAEA) report.

The NAEA had put the rise down to people who were already registered as buyers finding a property they were interested in and putting their own home on the market. The group had predicted the rise.

The group had warned that any recovery in the property market could be held up by the lack of homes for sale, so the increase is encouraging news to the housing market.

However, a flood of houses being put on the market could drive prices down and reverse the recent increase in prices, which was stimulated by a shortage of stock, economists have warned.

Despite the rise in properties bring put up for sale, other areas of the housing market suffered from the traditional seasonal slowdown, with the number of househunters registered with estate agents dropping to 238 on average, down from 292 in July.

There was also a dip in the average number of sales made per branch, with this sliding to an average of 7.6 in August, compared with 8.6 in July.

But both of these declines are expected during August, when housing market activity typically slows down as people go on holiday, and both measures remained well up on their level in August last year, when average sales dipped to a record low of just 5.2 per estate agent.

Gary Smith, president of the NAEA, said: "August always sees a dip in activity, regardless of the wider economic picture, and we believe that indications are that the UK housing market could emerge stronger and more quickly than previously considered possible.

"Particularly pleasing is the rise in the supply of housing and the continued presence of first-time buyers in the market as they often represent the essential foundations of sales chains."

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