With mortgage rates increasing over the past year and house prices declining, many consumers may be concerned about debt management problems leading to arrears or suffering from negative equity.
According to the National Association of Estate Agents (NAEA) potential buyers “consumers still lack confidence in the market” and are choosing to “wait and see” what will happen next.
However, the association’s members have recorded signs of stability in some areas such as the figures for sales agreed, sales that have fallen through and the number of viewings prior to sales. The length of time between estate agents receiving instructions and the sale of properties has also stabilised.
The NAEA has urged the government to take “decisive action” over stamp duty to encourage more buyers.
Chris Brown, president of the association said: “We are concerned that the anticipation of the suspension of stamp duty may halt the transactions in the housing market even further.”
This week Iammoving.com said more people are choosing to rent rather than buy at the moment.
By Morwenna Kearns