The Money Stop

Homeowners that have been keen to sell their homes before house prices plummet further have found themselves hitting a brick wall over recent months, as a number of factors have contributed to the housing market facing its worse slump in decades. Estate agents have reported very poor sales figures for properties, and many homeowners have found that they simply cannot sell their properties.

A number of factors have affected house sales in the UK over recent months. Tighter credit conditions that have stemmed from the global credit crunch have resulted in many would be buyers being unable to get the finance that they need to purchase a property.

Many other would be buyers have been put off by falling house prices and predictions of ongoing falls, and fear that they could be left facing negative equity if they make a purchase whilst house prices are still falling. Also, the chancellor recently hinted that stamp duty could be suspended for first time buyers over the coming months to increase affordability, and this has made some would be buyers decide to wait it out.

The lack of property sales is one of the factors that has resulted in an increased supply of rental properties on the market recently, according to industry officials. Reports suggest that many homeowners that cannot sell their homes have now decided that in the meantime they will put them up for rent, resulting in a far higher number of homes for rent coming onto the market.

Officials from the Royal Institute of Chartered Surveyors stated: “Frustrated vendors have been placing their property in the market to let as they have been unable to agree sales due to a lack of demand in the housing market. Many would-be buyers have been forced to rent as the route to mortgage finance has been blocked.”

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