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Homeowners turning to rental markets as sales stagnate
19 August, 2008Homeowners in the UK are now choosing to let their homes while they wait for the market to return to favour sellers, new research has indicated.
Homeowners in the UK are now choosing to let their homes while they wait for the market to return to favour sellers, new research has indicated.
It appears that sellers are moving to two extremes, as only yesterday it was reported that asking prices are now heading down closer to the average selling price in order to get their homes sold.
Explaining the situation, a statement from the Royal Institute of Chartered Surveyors (Rics) pointed to the double-edged sword of sellers and buyers being forced into the rental market: "Demand for family homes remains stronger than for flats. Many would-be buyers have been forced to rent as the route to mortgage finance has been blocked.
"A total of 43 per cent more chartered surveyors reported a rise than a fall in demand for houses, compared to 34 per cent of chartered surveyors who reported a rise in demand for flats."
The figures suggest that while sales and asking prices are coming down, there could also be a reduction of properties for sale in the market, effectively raising the value of a new home.
Certainly, the actions of sellers are a result of a sturdy buyers market, which will force prices down for some time yet, and with the Bank of England deciding against lowering interest rates, the market is set to remain unchanged for some time.
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