Wary homeowners restricting house market supply

Date:Monday 23rd February 2009
Author: Susanna Kavka

Cautious homeowners have been given as a reason for the low housing supply currently being seen.

Chris Brown, president of the National Association of Estate Agents (NAEA), explained that many people are putting off placing their property on the market as "a bit of caution".

He said that homeowners are worried that the poor market will mean they will not be able to sell their homes currently and also noted the effect of home information packs, which he called "a plague on selling your house".

But Mr Brown said that homeowners are not planning on not selling properties at all, but are simply waiting to see how the situation progresses.

Mr Brown was speaking after the NAEA released figures showing that while demand for housing is increasing, supply is waning.

The average estate agent was found to have 242 househunters on its books in January, up from December's figure of 200.

But monthly statistics for housing stock had gone from an average of 100 houses in December to 75 the next month.