London homes up for sale for three months or longer
Industry officials have claimed in a recent report that many of the properties going up for sale in London are up for sale for three months or longer. The slump in the housing market has resulted in many homes stagnating on estate agents’ books, with many buyers either unwilling to buy due to falling house prices and the threat of negative equity, or unable to buy because they cannot get a mortgage in the current financial climate.
Estate agents have recently reported that the level of property sales has fallen to an average of under one sale per week. This reflects the difficulties that many homeowners are having when it comes to selling their properties. Also adding to the delay in property sales is the fact that many homeowners are putting their homes on the market at unrealistically high asking prices, and many potential buyers are waiting it out in the hope that property values will continue to fall.
According to one industry official: ‘The London market has pretty much ground to a halt. Transaction levels are the lowest on record so a significant percentage of properties are just languishing unsold. The Government’s decision to axe stamp duty for properties below £175,000 for a year is unlikely to kick-start the market, as only 5% of properties currently for sale in the capital will benefit from this tax holiday.’
Another official spoke about the government’s tax duty break, adding that ‘…the measures will not have the impact needed to revive the housing market in London and much of the South-East due to the high average price of first-time-buyer properties. In addition, the Government’s offer of interest-free five-year loans of up to 30% of the property’s value for first-time buyers when buying a new home from developers discriminates against the second-hand market, where property will continue to stagnate.’
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