Consumer confidence slumps according to National Homebuyers
Homeowners may consider making a fast property sale as the latest report from Nationwide shows that consumer confidence hit a new low in February.
[UKPRwire, Wed Mar 19 2008] The firm has published its Consumer Confidence Index, revealing a three-point drop to 78 in the month.
A lack of confidence in the current economic situation was the main factor behind the record low and will be of concern to many homeowners.
With confidence so low, few people will be willing to make big purchases such as buying property, potentially leading to many people seeking a fast property sale before house prices fall as demand wanes.
"The continued downward trend in consumer confidence is to be expected given the effect of higher food and fuel costs on people's pockets and the tightening of the availability of credit," said Martin Gabhauer, senior economist at Nationwide.
"In addition, growing uncertainty about future economic conditions is also likely to have affected consumers' overall sentiment.
"It is perhaps too early for the base rate reduction at the beginning of February to have had any effect, but it is unlikely in current conditions that consumer confidence will return to the highs of 2007," he added.
Julian King of fast property buyers National Homebuyers comments, "People looking to sell their property will be concerned over the increasing lack of confidence in the market, as fewer buyers means prices will continue to fall.
"The lack of first time buyers [FTBs] is of significance. FTBs traditionally accounted for 45-50 per cent of all property transactions. This is especially bad news for vendors looking for a quick sale".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer to purchase any property in the UK. The company is also a leading in the Sale (or Sell) and Rent Back field, where the homeowner can sell their property for cash and rent it back for an agreed period of time.