One unnamed source told Mortgage Introducer that he knew of at least one estate agent who had admitted they had virtually no business since the increase to 5.75 per cent.
Stephen Foden, CEO of Spring Move, admitted that numbers coming through the doors of estate agents had dropped off significantly in recent weeks.
“On our estate agency side, the number of enquiries is substantially down. It would be quiet anyway with the usual holiday lull but it is certainly quieter than most years. Enquiries for our valuations team are also down as many people in this area have lost sales because of the flooding.”
Robert Bryant-Pearson, chief executive of Allied Surveyors, believed the last interest rate rise had stopped the market in its tracks as property became just too expensive for borrowers.
“We are facing a period of slow growth and possible stagnation over the coming months. Interest rate rises are now taking their toll and this, combined with the recent severe weather conditions, has resulted in buyers becoming increasingly cautious of what the market holds. The sales market in Northern Ireland stopped in its tracks as soon as interest rates increased to 5.75 per cent.”
A spokesperson for Halifax Estate Agents admitted that the market was certainly entering a cooling off period but brokers would not see the impact on business for a couple of months yet.
The spokesperson said: “Everyone expected rates to have an impact at some stage and our latest figures showed approvals were down 4 per cent in the second quarter. The increased listings in May, prior to the implementation of Home Information Packs, saw plenty of supply so while it’s not a story of a complete fall, we are definitely seeing a cooling off.”
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