Homeowners may be struggling to make a fast property sale because fewer buyers are entering the market
[UKPRwire, Fri Dec 28 2007] The latest gross mortgage lending figures from the Council of Mortgage Lenders (CML) show that there was an eight per cent decline in borrowing between October and November.
In addition, the annual difference was also eight per cent and the drop in lending means fewer people are buying homes, spelling bad news for anyone seeking a quick property sale.
The CML says that November's figure is the first to show an annual drop since July 2005.
"As we had forecast, lending in November dipped below its 2006 equivalent for the first time this year and we expect this trend to continue into 2008," said Michael Coogan, director general of the CML.
"However, while lending will be subdued in coming months we see this as primarily a result of lack of available funding rather than lack of consumer demand," he continued.
Fast property sale expert Julian King adds, "We have been heralding this issue for many months: homeowners need to be aware that selling property quickly in 2008 will be extremely difficult.
"Lending restrictions and less confidence in the market will lead to lengthy periods of marketing activity before attracting a buyer and because buyers can call the shots, prices will continue to fall.
"With 45,000 repossessions forecast for 2008, time is one luxury that many will not have".
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.
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