 
Quick Move Blog
Friday, 28 November 2008
Latest figures from the Land Registry confirm the figures we've seen from the mortgage lenders and estate agents, with prices falling 10.1% year on year to October.
Prices in October fell by 1.5% compared with September, the 14th consecutive monthly fall.
The average house price is now at levels last seen in the summer of 2006 at £165,529. Flats showed the biggest fall in prices. As we know, transaction levels have also fallen, with LandRegistry figures confirming an average of 54,488 transactions per month, compared with 118,165 a year ago.
Thursday, 27 November 2008
Both the Nationwide and Halifax’s house price indices are showing rapid and continued falls in property prices.
| Latest Index | Average Prices | Oct Prices | Last Year | | Nationwide | £176,500 | -2.2% | -14% | | Halifax | £174,136 | -1.5% | -13% |
Average sale prices have fallen continually over the past year which has had a massive effect on both home buyers and sellers.
On the face of it lower house prices are good for home buyers. However the falling prices have coincided with the credit crunch so many first time buyers are struggling to secure mortgages and are so unable to get on the ladder. Also in reality most of the UK property market is based on a chain of transactions, as most buyers also have a property to sell. These homeowners are unable to sell their current home so the whole market has ground to a halt.
Although there are individual and regional variations the price falls have affected the whole country and all property types. There is just no escaping it. Most home owners have made the decision to stay put but there are many who have no choice-they have to sell.
The advice to anyone who needs to sell in this market is to be realistic and try to sell quickly before prices fall further.
For example if your house is worth £250,000 now and it takes you 6 months to secure a buyer your homes value could fall by £30,000 in that time. Therefore you need to make sure you get on the market at a realistic price and don’t waste time at over optimistic level.
If you already have a sale agreed to a committed buyer you are to some extent immune to these changes as long as the buyer doesn’t re-negotiate or sale abort. Unfortunately this is now extremely common and if it does happen you need to be aware of the changing market conditions and revise your asking price and expectations accordingly.
Obviously the current market is presenting opportunities for some. First time buyers who can secure a mortgage are finding affordability levels improving for the first time in years. And home owners lucky enough to find a buyer for their property are able to negotiate good discounts on their onward purchase. We call this concept Sell Cheap to Buy Cheaper and more info can by found on our website.
We expect prices to decline further during 2009. Recession, unemployment, and reduced mortgage availability will all combine to see continued difficulties in the housing market. Basically a lack of demand and an oversupply of property will create a buyers market, resulting in more downward pressure on prices.
For more housing market comment please visit our HMI blog.
Friday, 21 November 2008
Properties repossessed by mortgage lenders rose by 12% in the third quarter of the year, to toal 11,300.
The number of borrowers in arrears also increased compared with the previous quarter, by 8% to 168,000.
In the same period, the number of repossession orders by the courts increased by 3% tto 29,516.
The figures, from the Council of Mortgage Lenders, confirms the tough environment that many buy-to-let mortgage holders are facing, with arrears in this group being higher than other mortgage holders at 1.58%. Landlords are increasingly seeing falling rents and an over-supply of rental stock.
Tuesday, 18 November 2008
The Council of Mortgage Lenders has warned today that lenders can seize buy-to-let properties without court orders if they're struggling with their mortgage payments.
A spokesman for the CML said lenders could "step into a landlord's shoes". Banks could either receive rent from the tenant for a fixed period of time or even repossess the property.
As our previous blogs mentions, there has been a flod of properties coming onto the rental market as people struggle to sell thier houses, causing rents to fall for the first time since 2003.
This is where Quickmovenow.com can help you:
- If you're struggling to sell your house through an estate agent, call us - as a private, cash buyer, we can act quickly, often closing a purchase within 7 days, letting you get on with your move, and helping you avoid the alterntive of renting your property out in a falling market
- If you're a landlord, your falling rents may mean that you can no longer cover your BTL mortgage. Don't keep struggling as rents may not recover for some time to come. Instead call us - we will buy your house, quickly, relieving you of the stress evident in this market and ensuring you lose no further money on your property.
Remember, as a private, cash buyer of property, using our own funds, we can act very quickly - certainly fr quicker than any estate agent can act in this market. Call quickmovenow.com or visit our website for a free estimate of our offer.
A glut of unsold houses on the market has driven rents down at the fastest rate on record, according to RICS.
New instructions to sell flats and houses had been at record levels in the past few months. However, RICS said many people who cannot sell their homes have decided to let their properties, and this increase in supply has pushed rents down.
The proportion of surveyors reporting lower rents was its highest since 2003.
Difficulties people have had in buying and selling homes have spilled over decisively into the rental market.
With the supply of mortgages, sales and house prices all falling fast, many would-be vendors have decided to let their homes instead of selling them.
"Frustrated vendors are placing their property on the market to let as they have been unable to agree sales due to a lack of demand in the housing market," said RICS.
London has seen the fastest fall in rents, with slump in demand, a consequence of its dependency on the financial sector which has seen a slump in confidence and a rise in unemployment.
If you're a landlord and need to cut your losses quickly, call Quickmovenow.com. By selling your house quickly, you can quickly pay off your buy-to-let mortgage and stop losing money.
Mortgage deals for people with just a 10% deposit have almost disappeared from the market.
Only 66 deals 10% deposit deals are still available compared with 586 three months ago and 1,197 in February.
With the market shrinking rapidly, the higher-deposit deals are dominating the limited mortgage scene.
Ray Boulger of Charco, the mortgage broker, said that lenders were still tightening their belts and so were likely to be rejecting more borrowers whom they considered to be at a greater risk of going into arrears. "I do not see the situation getting better in the short term," he said.
According to the Chief Exec of Bradford & Bingley, the buy-to-let housing market is 'closed'.
In giving evidence to a House of Commons committee, Richard Pym said so many deals had been withdrawn that the market was completely different from last year.
60% of Bradford and Bingley mortgage business is buy-to-let with another 20% self-certified. With the buy-to-let market likely to be hardest hit, already 3% of B&B mortgages are in arrears, higher than the industry average. If rents fall as well, then the market will be in even more trouble.
If you are a buy-to-let landlord, struggling to make the mortgage payments and needing to sell your property quickly, call quickmovenow.com on 0800 068 3366.
Friday, 14 November 2008
We added a new page to the site looking at how much you could actually save by using a quick house sale company, such as Quickmovenow.com rather than selling through the traditional estate agency route.
As cash buyers, quickmovenow.com can offer a faster house sale than through estate agents, and potential could reduce the cost of your hosue sale.
To demonstrate some of the costs involved in selling on the open market through an estate agent, we've added a simple calculator to our cost savings page. Simply enter the asking price of your house and we'll show you what you're likely to receive for your house sale via an estate agent.
For more information on how to sell your house quickly, contact quickmovenow.com on 0800 068 3366.
Tuesday, 11 November 2008
RICS has reported that house sales are at a 30 year low, stiffled by the lack of mortgage availability. Home loans for purchases fell by another 15% in September compared with August, 57% lower than last September.
The average number of completed house sales per RICS member fell to 10.9 in the last quarter, the lowest level since figures were first compiled in 1978.
This impacted house prices with 84% of RICS members reporting a fall in prices in the last quarter, with just 2% recroding a rise.
Thursday, 6 November 2008
House prices continue to fall according to the latest figures from the Halifax. They report that in Ocottber, prices fell by 2.2%, and 13.7% over the past year, meaning that the average house now cost £30,000 less than 12 months ago.
Acording to the Halifax, prices are now back to levels last seen in October 2005.
Monday, 3 November 2008
The number of properties sold in September fell by 50% according to latest figures from HMRC.
Sales totalled just 59,000, down from 126,000 last year, despite the Government's changes to Stamp Duty. September was also the month when the financial crisis took prominence.
According to a housing analyst, Henry Pryor, prices are falling fast, with many properties down 20% on their peak. Pryor has expectations of prices falling to 2002 levels, meaning some prices may fall by 50%.
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