Property market's problems remain, say experts

Those thinking of buying a home in the current market are continuing to struggle, it has been suggested.

A survey of National Association of Estate Agents (NAEA) members has found that more than half do not believe current government policies will help the property market.

In September chancellor Alistair Darling announced that the threshold for homes eligible to pay stamp duty was being raised from £125,000 to £175,000 for a period of one year.

However with the Land Registry showing the average price in London to be almost £329,000, this will not affect the majority of buyers in the capital.

And the NAEA stated that the threshold change has not been enough, calling for the duty to be suspended altogether.

Chris Brown, president of the body, also noted that those with a home have been facing the prospect of negative equity due to price falls.

"Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago," he said, adding that many are having to "come to terms with the new economic reality".

Anyone hoping to avoid this bleak outlook may be advised to rent a house or flat rather than buy.

Published 19th November, 2008

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