Estate Agent Body: UK Recovery Maybe Close

The National Association of Estate Agents has become the latest body to state that the recovery of the UK housing market may not be as far away as first thought. The body basis its claim on recent rises in the number of first time buyers in the UK market, which more than doubled in the first two weeks of 2009, with 22.5% of registered buyers being first-time buyers.

According to the NAEA this shows rising consumer confidence, Peter Bolton-King, CEO of the NAEA, said: "This figure is highly significant in terms of demonstrating an increase in consumer confidence. The NAEA views FTBs as the bedrock of a healthy housing market.

Bolton went onto explain why the rise in first-time buyer activity may also suggest a recovery in the near future, he said:

"During the boom years we saw the number of FTBs as a proportion of buyers rise as high as 37 per cent, and I believe that an average of 25 per cent is indicative of a healthy and confident market. While the figure of 22.5 per cent is definitely not a sign that the housing sector is out of the woods yet, it does suggest that those infamous green shoots of recovery may not be as far off as first thought."

The NAEA also revealed findings of its recent survey, which found that second-time buyers are also very active at the moment as they look to "bag a bargain".

According to the survey agents saw a "flurry of activity" in the first two weeks of 2009, with agents receiving an average of 10 new sellers. Sales also saw a spurt with average sales being four in the first two weeks of 2009 compared with November and December's monthly averages of 6.