Underlying factors in property market 'still exist'

The underlying factors that help to maintain the UK property market are still in place, according to the National Association of Estate Agents (NAEA).

Stewart Lilly, the president of the organisation, made the comment after research found that the market share for first-time buyers reduced across March.

It was also revealed that the number homes available rose, meaning that a growing amount of choice is available for those who are thinking about entering the property market.

The number of people on estate agents'' books is also reportedly stable.

Mr Lilly said that the research showed that financial conditions and a "squeeze" on mortgage approvals are having an effect on some peoples'' decisions to buy.

He added: "Over the next few months it is imperative that the shackles are released on the mortgage market so consumer confidence can be rebuilt, allowing the market to stabilise."

The NAEA also recently welcomed the Bank of England''s decision to reduce its interest rates, but added that mortgage lenders need to pass the cuts onto borrowers.

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