Susan Watson from Smiths Gore in Winchester analyses findings from a National Association of Estate Agents marketing report:

“First time buyers are showing more confidence in the property market with the result that nearly a third of homes sold in February this year were to those making their initial step onto the house buying ladder, equalling the proportion of buyers in September and showing more movement from this sector of the market since records began in 2009.

“Findings in the recent report from the National Association of Estate Agents also show that demand for property is up with more house hunters registered for each member branch of the NAEA. This, coupled with a slight decline of available properties, means that there is a continuing imbalance in supply and demand with a significantly higher demand which is a problem that is unlikely to be resolved anytime soon.”

Sales of properties across the board, however, have remained constant.

Mark Hayward, managing director for the NAEA, said: “It’s clear from the findings in the report that things are starting to ease for first time buyers, which could be down to reduced property prices or more accessible funding, especially following December’s stamp duty reforms. We will all be waiting with bated breath to see if the first time buyer figures increase following the new Help to Buy ISA, and whether we see real momentum in the market. It still remains notoriously hard to get cut-through in the property market, especially for first time buyers, so any green shoots are encouraging.”

Estate agents are eternal optimists but even the most upbeat have been wondering how long it will be before things get going properly again with more people able to fulfil their ambition of moving home. There seems to be a general consensus that the lull in the property market is due to the up-coming election. In fact a quarter of estate agents believe that the election will have the biggest impact on the market this year.

Other figures taken from the latest NAEA housing market report indicate that 45% of agents think that the Conservatives’ pledge to build 200,000 more homes will have the best impact on the housing market. On the downside, 57% think Labour’s proposed Mansion Tax will have a negative impact.

It is anticipated that the Help to Buy ISA scheme, launching this autumn, will give the market a further boost. The idea is to help those struggling to accumulate a substantial enough deposit to purchase their first home, with the offer that when they save up to £200 every month, the Government will add 25% on top. It is estimated that around 285,000 first time buyers a year will use the scheme. It especially benefits couples buying for the first time as both are eligible, which potentially means £6,000 from the Government bonus towards a new home.

Susan concludes: “The limited supply of properties does mean that anything new to the market is attracting attention from some serious buyers, who are just waiting for the right home to come up. So it could be a good time to beat any post-election rush and make sure your property gets plenty of attention.”

Contact Susan at Smiths Gore for more details on 01962 857400