Although the housing and homeowner loan markets are struggling to keep their heads above water at the moment, with a decline in completed house sales in excess of 50 per cent since the same time last year, as many potential buyers wait and see how far the price of property will actually drop before they are prepared to purchase, there is some positive news on the housing front which suggests that the recent rescue plans introduced by the Government are actually starting to filter through to the market.

According to the National Association of Estate Agents (NAEA), although the number of property sales for September was still incredibly low, there were an increasing number of first time buyers taking the plunge and committing to buying their first home and applying for a mortgage or loan. The figures also revealed that the average number of sales per agent increased through the month of September to six, from five in August. This is the first time sales have shown an increase since January this year.

It is thought that the recent changes to Stamp Duty could have influenced some first time buyers who were sitting on the fence about purchasing, although it is more likely that the current relatively cheap price of housing has encouraged buyers to snap up bargains from people who need to sell and are prepared to accept an even lower offer on their property.

The Governments recent financial rescue package for banks and other loan providers should hopefully help restore some stability to the market and along with recent interest rate cuts, with the prospect of further reductions in the coming months, should make a mortgage more affordable for those who currently simply cannot afford to purchase a property in the current climate.

Chris Brown of the NAEA said “it is evident from the results that despite some positive indicators, consumers are still cautious with many adopting a wait and see attitude and are only moving if it is necessary. First time buyers however, seem to be returning and this is most likely due to the Government’s decision on stamp duty last month.”