Credit crunch may reduce buyers in the market, says National Homebuyers

The global credit crunch could have a serious effect on the number of first-time buyers (FTBs) entering the property market.

[UKPRwire, Wed Oct 03 2007] With many lenders tightening their lending criteria it is set to become increasingly difficult for young buyers to get a mortgage.

This is bad news for anyone looking to sell their property as fewer buyers means a drop in demand and falling house prices.

"We're anticipating that there will be much more sensible lending criteria both in terms of risk margin, but more noticeably in terms of loan to value and serviceability," said Jim Ward, residential research director at Savills. "It will strengthen rental demand."

With the housing market set to suffer as a result, there may be a surge in the number of people looking to secure a quick property sale in order to get the best deal on their home.

Quick property sale providers National Homebuyers says they have already seen such a surge.

Director Julian King says, "Our business increased 95% month-on-month from August as homeowners began to consider the financial implications of owning a property whose value was decreasing daily.

"Those who, as a result, opt to sell their property on the open market then face a further problem: the lack of available buyers.

"The tighened policies from lenders means that a surge in properties and a reduction in buyers will result in an escalated reduction in property prices across the UK".

Julian King is a director of National Homebuyers, the UK's leading fast property purchase firm that guarantees a quick sale on any UK property, regardless of its condition, for vendors who need a quick sale.

Many sellers will want to act quickly in order to avoid getting into financial difficulty.

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