House sales slump by 40% according to report
A recent report has shown that house sales in the UK have slumped by 40%, as the nation continues to go through a mortgage and housing market meltdown. Poor property sales have been affecting the market for some months, with a number of factors affecting the falling sales levels in the UK, and estate agents reporting some of the poorest sales figures in decades, with most averaging just five property sales a month.
The tighter credit conditions that have stemmed from the global credit crunch have resulted in fewer people being able to get an affordable mortgage. This means that fewer people are able to purchase a property, which is impacting upon house sales levels. Also, many would be buyers are nervous about the ongoing falls in house prices, with many fearing that prices could continue to fall even after they have purchased a home, which is also putting some people off.
On top of this the government has suggested that there may be a suspension placed on stamp duty for first time buyers, but have failed to confirm this. As a result many people are putting off buying a property in case they get to save thousands of pounds in stamp duty just a few weeks or months down the line. This is another factor that is seriously affecting house sales in the UK.
An official from the Royal Institute of Chartered Surveyors stated: ‘The lack of mortgage finance has brought the market to a virtual standstill, with first-time buyers rapidly becoming an endangered species.’
He continued: ‘The current confused messages from the Government risk damaging any returning confidence and may discourage mobility.’
Recent Additions:
- 20% fall in rents in some areas
- A difficult twelve months lie ahead
- Higher arrangement fees in place for mortgage borrowers
- Using a broker for your borrowing
- Mortgages still costing consumers a lot of money
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