Estate agents more upbeat about property market
Nobody can argue about the fact that the past year has been a particularly turbulent one for estate agents and other industries connected to the property market, as the slump in property sales has made things very difficult.
Many estate agents have gone out of business altogether due to abysmally low property sales levels, and many others have had to really scale back and cut the number of employees because of the drop in business activity.
However, according to a recent report an increasing number of estate agents in the UK are now becoming more upbeat about the property market, with renewed confidence resulting from an increase in buyer enquiries and an expected increase in property sales fuelled by lower house prices and the base interest rate, which has hit an all time low at just 0.5 percent. It is hoped that the renewed interest in the property market will soon start equating into increased sales.
An official from the Association of Estate Agents said recently: ‘Generally, our members are a little bit more optimistic than during the fourth quarter of last year. About 80% are more upbeat, although that does not mean things are wonderful.’
A spokesperson from the Royal Institute of Chartered Surveyors added: ‘Investors are coming back into property. They are getting no return on their cash, while they can get between five and seven% gross return on a rental property with the possibility of capital appreciation.’
A number of industry experts have recently predicted that the end could be in sight for the property slump, stating that prices will soon bottom out and new enquiries could start converting into sales. However, continued restrictions with mortgage lending could hamper the recovery of the housing market, as many would be buyers still cannot get the finance that they need to make a property purchase.
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