BoE states buyers hoping to get 20% off price of a home
Since the housing slump began some months ago in the UK there have been many problems for homeowners that are trying to sell their properties. Property sales in England and Wales have gone through the floor for a number of reasons. Falling house prices have put some people off buying for fear of falling into negative equity. Tighter credit conditions have made it impossible for some to get a mortgage and buy a home. In fact, a number of factors have affected buyers’ ability or willingness to make a purchase.
This has left many desperate homeowners who are looking to sell their properties in a very difficult position, and some buyers are now hoping that that the situation will help them to secure a large discount on the price of the property. According to officials from the Bank of England some potential buyers are now trying to get as much as 20% wiped off the asking prices for a property, and are hoping that the homeowner’s desperation to sell coupled with the very slow housing market will help them to secure this huge discount.
An official from the Bank of England stated: ‘Uncertainty regarding valuations was discouraging potential buyers, some of whom were reported to require discounts of at least ten to 20% off the asking price.’
The report from the central banks also indicated that some people were losing thousands of pounds by way of deposit, as it appears that many people who have bought directly through house builders and have put down deposits of 10% are now pulling out because they are concerned about completing the deal in a market where property values are still falling.
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