The housing market is cooling and the number of new buyers is diminishing.
[UKPRwire, Thu Sep 27 2007] A report from Haart estate agents shows that price growth reached just 5.46 per cent in August, crashing from 6.59 per cent in February.
It comes after five base rate rises in 12 months and is just the latest in a long line of publications to show that house prices are suffering.
In addition, the lifeblood of the housing market, new buyers, is failing to make it onto the property ladder, leading to much wider problems for homeowners.
According to Haart, 60 per cent of its branches reported a downturn in new buyers of between -3 per cent and minus ten per cent or more.
"Following a prolonged period of extremely buoyant growth, house price inflation has begun to slow across the UK, as the succession of five interest rises since last August begins to take effect," said Paul Smith, Haart's chief executive.
Mr Smith went on to say that anyone looking for a quick property sale is being forced to accept lower offers than they had intended.
"With buyers now increasingly price sensitive, sellers have lowered their expectations on achievable price," he added.
Julian King, director of fast property purchase firm National Homebuyers add, "Although vendors may be lowering their expectations, we do not believe this will be enough to calm the predicted price fall.
"After Christmas when homeowners opt to sell their property, they will be met with a lack of available buyers, thus forcing the price of their property down in order to achieve a sale. However, the lack of buyers will also mean that a property has to remain on the market for a lot longer in order to achieve a sale. Homeowners looking for a quick sale will need to find an alternative method to selling their home".
National Homebuyers is the UK's leading fast property purchase firm, guaranteeing a quick sale on any property surveyed for homeowners who need a quick sale of their home for whatever reason. The company also arranges an equity release solution, "Sell and Rent Back", this allows the homeowner to sell their property for cash and remain living there as a tenant for as long as neccessary.
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