Lenders letting prospective buyers down: NAEA

Estate agents have claimed that mortgage lenders in Britain are continuing to let down those wanting to buy houses.

According to the latest report from the National Association of Estate Agents (NAEA), there were slight decreases across supply and demand in May. In May, 275 people registered with a branch, compared to 277 in April. However, this is still well up year-on-year comparison, where a figure of 265 was reported for 2010.

The average number of sales agreed per branch stayed at eight for the fourth month in a row. But the percentage of sales to first time buyers increased from 21% in April to 24% in May. The average number of properties for sale per branch decreased slightly from 69 to 68.

According to the NAEA, the combination of large deposit demands, pressure on household finances and the gloomy economic picture for the UK is causing stagnation in the housing market.

Wendy Evans-Scott, president of the NAEA, said: “Demand for property remains consistent but the barriers to buying are proving impossible to overcome for the vast majority of consumers.