Buyers stay at home but estate agents optimistic

Housing

The housing market is feeling the first fallout from last week's US terrorist outrage, according to a survey of estate agents yesterday. A poll of leading agents by The Independent revealed a large number of buyers had withdrawn offers while the number of inquiries had fallen. But not all estate agents told the same story. Some reported no sign of a marked slowdown in the UK's booming housing market and said yesterday's cut in mortgage rates could boost demand.

Chris Brown, the chairman of the National Association of Estate Agents for Nottingham and Derby, said: "People got the heeby jeebies so the amount of footfall and telephone inquiries were down last week."

Peter Wetherell, the NAEA's central London chairman, said some buyers had withdrawn offers. He likened the current environment to the aftermath of the death of Princess Diana in 1997. "How long do you mourn for?" he asked.

Robert Feeney, the NAEA's East London chairman, said he had noticed a fall in buyers. "The response has been a lot quieter," he said. "People are not ringing in anywhere near as much in the last few days and I might not even have bothered opening up the shop on Saturday." Guy Worrall, the chairman of the Birmingham NAEA, said the market was "still catching its breath. It is generally quieter because of [the attacks] and people are thoughtful," he said. "But I have been seeing properties and have even sold properties since Tuesday. We are hopeful but more cautious."

But other agents reported little change. Paul Shearing, in Welwyn Garden City, Hertfordshire, said business had not fallen "even slightly". "Perhaps with the turmoil in the City people are looking to property as a safe haven,"he said. Peter Jones, of Tayler & Fletcher, in Stow-on-the-Wold, Gloucestershire, said he had not noticed any change. "Activity remain good," he said. "So far it is business as usual." Paul Farndon, the NAEA chairman in Leicestershire, said: "We are supposed to be in recession and interest rates are falling but it's not affecting the market because money is still so cheap."

The consensus in the mortgage market was that the bull run this year would be slowed but without a drying up of demand. Martin Ellis, the group economist at Halifax, said: "The risks of a harder landing in the US and UK economies ... mean an increased risk of a sharper downturn in the housing market." John Wriglesworth, at internet property database Hometrack, said: "Mortgages are at their lowest level in more than 40 years and affordability is well below previous house price peaks. People are shell-shocked now [but] this disaster is not going to stop demand, it will just slow it slightly."