Potential buyers choose to rent instead according to National Homebuyers
More and more potential homebuyers are turning to rented accommodation, spelling bad news for anyone seeking a fast property sale.
[UKPRwire, Tue Feb 05 2008] A new report from the Chartered Institute of Housing (CIH) and the Building Societies Association (BSA) has revealed that the buy-to-let sector has grown rapidly in recent years.
It comes as mortgage costs soar, with the average first-time buyer (FTB) in a worse position now than they were at the peak of the property bubble in 1990.
Many homeowners will be desperately trying to secure a fast property sale in order to get some money for their property as the market dries up.
"With first-time buyers finding it increasingly difficult to get a foot on the housing ladder, the private rented sector is providing accommodation to increasing numbers of people," said Adrian Coles, director general of the Building Societies Association.
Fewer buyers entering the market means house prices may fall as a lack of demand forces sellers to reduce their asking prices. Julian King of National Homebuyers says that the lack of buyers means it will be difficult for sellers to achieve their asking price.
"There are many facets to the reduction in property prices across the UK, but the lack of people wanting to buy is directly related to those who are willing to pay.
"As fewer buyers want - or are able - to enter the market, one will find that prices will continue to fall with some analysts predicting 1 per cent falls in value every month this year".
Mr King is a director of National Homebuyers, the UK's leading mortage rescue scheme provider, either arranging a quick property purchase or a Sell and Rent Back agreement where the homeowner can release equity in their property and rent their home back