Interest rates slowing housing market

According to new figures from the National Association of Estate Agents (NAEA), interest rate hikes have finally slowed the housing market.

Numbers of registered buyers, properties on estate agents' books and sales per agent all fell during July and some figures were similar to those normally seen during the quiet Christmas period.

Fewer people are looking to buy a home, with numbers dropping by 2.5 per cent in the same period.

Estate agents reported that an average of 314 buyers registered, compared to the 322 recorded in June and 387 seen in July 2006.

They also said there were not as many properties for sale, with an average of 45, compared to 68 properties in June.

NAEA president Stewart Lilly described the figures as "dramatic" and worrying and said that the summer season and interest rates were to blame.

A recent study by GE Money showed that first-time buyers struggling to get on the property ladder were willing to compromise on space and other preferences in order to do so.

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