Optimism in the housing market, including the new homes sector, is continuing to grow year thanks to improving market conditions, including greater access to low-cost mortgage products, a the latest report from the National Association of Estate Agents (NAEA) shows.
The December 2012 Housing Market Report from the NAEA shows that the residential property market recovery picked up pace last month, as the volume of active house hunters looking to buy a new home increased.
The data shows that the number of house hunters reaching an average of 282 per branch in December. This represents an increase on the three months to December and a high-point for the fourth quarter.
The NAEA's December's house hunter numbers are up 41% since their lowest December levels in 2008 (200), and are up 7% on the previous month, November 2012 (263).
Mark Hayward, president of the NAEA, said: "December can typically be a challenging month for the property market, as many buyers abandon their search until the New Year. However, last month's figures show a healthy December boost, and a substantial gain on the mid-recession low of December 2008".
"Demand is clearly returning to areas of the market, and agents are seeing more house hunters looking for their ideal home."
"In this climate it's important that those seeking to buy a home - and particularly first time buyers - have access to affordable mortgage finance. The news this week that Lloyds Banking Group will aim to lend £6.5bn in an effort help 60,000 people buy their first home in 2013 is strongly welcomed by the NAEA."
The NAEA Housing Market Report also showed that the percentage of sales made to first time buyers saw a slight decrease in December, with agents recording 21% of market share in December compared with 22% in November.
However, with a greater range of affordable housing options now available, coupled with cheaper mortgage borrowing rates, fuelled by the Funding for Lending scheme, many experts expect to see first time buyers activity pick up in the coming months, following a confident start to 2013.
John Bagshaw, corporate services director at Connells Survey & Valuation, commented: "By any measure, 2013 has got off to a positive start. We normally see a gradual recovery from the festive hiatus, but January's valuations market has come bouncing back. Credit conditions have shown signs of easing in the New Year and those first time buyers that can are taking advantage, boosting overall activity.
"First time buyers were central to the strong overall growth seen in January - making up one third of the total valuations market for the first time since June. Valuations on behalf of first time buyers grew by 24% from December. In a fifth month of annual growth, there were 40% more new buyers than in January 2012."
