NAEA Believes in Housing Market Recovery

Unlike the Fitch Ratings, the National Association of Estate Agents (NAEA) is strongly determined that the recovery of the UK housing market is possible in the near future and that is why the organisation urges the British Government not to cancel the stamp duty holiday, at least for properties priced ?175,000 and less.
Let us remind that in September 2008, the UK Government increased the threshold, when homebuyers do not have to pay a stamp duty (1%), was increased from £125,000 to £175,000, which resulted in an opportunity for buyers to save as much as £1,750. Unfortunately, according to the Government’s plans, this stamp duty holiday is to end in December 2009.
Estate agents – members of NAEA – believe that the cancellation of the stamp duty holiday will have a negative effect on the UK housing market, which has just started to show signs of recovery. Moreover, first-time buyers, who traditionally benefit from the stamp duty holiday and, according to official estimates, constitute up to 26% of new sales, are sure to be affected.
The NAEA argues that the benefits of the stamp duty holiday extension, such as increased sales, will outweigh any costs involved in the process of extension.
Latest report of the National Association of Estate Agents shows that the UK property market improved in September. The report highlights that the number of potential homebuyers increased from 238 per each NAEA branch to 294 in August and September respectively. Also, the number of agreed sales increased from 8 per branch in August to 9 in September. The only bad news was associated with the number of properties listed for sale, which slightly fell from 64 houses per branch in August to 62 in September.
Mr. Gary Smith, president of the National Association of Estate Agents, the organisation’s figures clearly show that the UK housing market has started its recovery and needs more to proceed.