Home Sale Network

THE HOUSING MARKET RECOVERY WILL BE LED BY FAMILIES "TRADING-UP"

Biggest demand will be for two-bed homes

New pension rules will boost buy-to-let

The latest decision to cut interest rates to 4.5%, against a background of successive rate freezes, have fertilised the “green shoots” of a housing market recovery.

The first to become the most active buyers will be families wanting to “trade-up”, according to Home Sale Network, the UK‘s leading network of 750 independent estate agents.

First-time buyers are also predicted to re-enter the market, following a decline of activity over the past few years. Almost a third of Network members (29%) believe that first-time buyers will also dominate sales activity. None the less 40% of Home Sale Network members forecast that families wanting a bigger home will be the most active buyers in the second half of 2005.

According to Richard Tucker, Managing Director, Home Sale Network “This is the most encouraging feedback for many months, especially for the plight of first-time buyers”.

This latest survey of Home Sale Network members nationwide also identified that two-bedroom houses and flats are expected to be the fastest-selling properties according to 43% of respondents, overtaking the long-established role of three-bed semi-detached homes (at 42%).

56% of Home Sale Network members have also seen signs of buyers acting more decisively, with the time between properties being marketed and achieving a final offer falling below 11 weeks.

"Successive decisions to leave interest rates unchanged, followed now by a rate cut, are helping to boost buyer confidence, alongside the fact that fears of a property price ‘crash‘ have now been disproved", said Richard Tucker.

Fears of a house-price decline could be further reversed by the impact of a new pension tax-incentive, according to the survey.

Most Home Sale Network members (91%) believe that the new SIPPs (Self Invested Personal Pension) rules, permitting residential property purchase to be added to pension funds, will boost the buy-to-let market.

ENDS 26th August 2005

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Notes to Editors

The Home Sale Network is made up of 750 of the country‘s leading independent estate agents selected as being the best in their locality for service, knowledge and all round professionalism.