Estate agents at risk of problems due to mortgage and housing chaos
A recent report has shown that many estate agents could be at risk of going bust as a result of problems in the housing and mortgage markets, which are resulting in fewer homes being sold through estate agents. The housing slump has resulted in fewer people taking the plunge when it comes to buying property, with many waiting for property prices to fall further, as they are expected to do. Sellers are also holding off putting homes up for sale in some cases, because they don’t want to sell at low prices.
In addition to this the tighter lending conditions that have resulted from the global credit crunch mean that many people that are looking to purchase a property cannot get the finance that they need, and are therefore unable to buy a home even if they wanted to. The National Federation of Property Professionals stated that up to eighteen thousand estate agents could suffer as a result of the situation, and accused lenders of over-reacting to the credit crunch, thus fuelling problems in the housing sector.
One official from the federation stated: “Lenders do not seem to be in the business of lending any more. They are the ones who lent irresponsibly and now the public and our industry are paying the price.”
An economist from the British Chambers of Commerce said: “The Government must adopt pro-active policy measures aimed at countering the threats to growth. Public finances remain stretched. There are large current deficits and excessive levels of total borrowing.” He also went on to state: “Recent tax changes have undermined business confidence and they will face a difficult and risky climate over the next year.”
Recent additions:
- Brokers complain over lack of access to mortgage deals
- Slump in lending levels fuelled by credit crunch
- Struggle continues for first time buyers
- Many lenders ignore base rate cuts
- Mortgage approvals slumped in March
- Credit crunch means slump in mortgage lending
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