Property prices, the need to be more realistic
Its very hard to escape from the fact that the current housing market in the UK is in a turmoil, there is always something on the TV, radio and the newspapers about recessions, mortgages, repossessions and the fact that house prices across the UK have fallen to an all time low.
I came across an interesting article in The Docklands newspaper (Wednesday, October 22, 2008, page 29), the article states that according to Knight Frank at Canary Wharf, sales volumes are between 50 per cent and 60 per cent lower than average on the capitals most desirable postcodes and one of the main reasons for this apart from the lack of mortgage finance is ‘a continuing lack of realism among vendors’.
The problem at the moment is that vendors who are not accepting lower offers for sales on their properties are opting to rent out their properties instead, this is increasing the supply and quality in the rental market and, ‘as a consequence, rents have fallen over the past few months, and at certain price points there is now a glut of homes to rent’.
As a lettings agent i am aware of the expectations from my landlords, however despite the awareness of price falls it is very hard to come to an agreement between the the landlords and potential applicants. Like the article states, ‘it is difficult for many homeowners to accept that their homes may be worth as much as 20 per cent less than a year ago‘, landlords are unwilling to accept lower rents on their investments.
Until market conditions improve, landlords and vendors will have to come to terms with the fact that property prices have fallen, it is currently a buyers market and people are not willing to pay as much as they would have done a year ago. Landlords and vendors need to be ‘more realistic’, if not, there will no doubt be lots of empty rental properties and sales will fall even further.
READ MORE ON THIS ARTICLE
- The Need to be ‘realistic’ from The Docklands newspaper, October 22, 2008, page 29
- Knight Frank estate agents, Canary Wharf | www.knightfrank.com
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