Property sales highest for a year

Estate agents have reported a rise in the number of homes which changed hands in February, pushing sales to their highest for a year.

According to the National Association of Estate Agents, the average estate agent sold eight properties during the month, up from a record low of just five in August.

The group said the recent jump in buyer interest has started to translate into increased sales and shows that a growing number are looking for any "bargains to be had" in the property market.

It believes that low interest rates are fuelling sales as putting money away in a savings account is less beneficial, so a growing number are looking to make a long-term investment in houses.

Figures also show that interest in the housing market was maintained during the month, with an average of 240 househunters on estate agents' books, following a jump of more than 20% in January.

The number of interested parties who were first-time buyers also remained broadly unchanged on January's 24%, almost double the 11% recorded in December.

The NAEA said that if first-time buyers were able to get the finance necessary for a purchase they were "ready and willing" to buy a property and the interest from such parties remained "very strong".

However, it urged lenders to increase lending to enable people who wanted to purchase a home to be able to do so.

The NAEA said: "While times remain tough, there are also a number of reasons to be positive. The number of sales per agent jumped to eight - the most successful figures in a year and a real reason, coupled with the first-time buyer figures, to take heart.

"However, all of this is borne out in the knowledge that sellers are still having to slash their prices to achieve these sales."

The average number of homes that estate agents had on their books remained low by historical standards during February at 74, suggesting that sellers remain wary of the market and continue to believe they will get a better price for their home if they wait for another six months.