House hunting gets off to slow start this year

According to a recent report the start of the house hunting season, which traditionally begins around the Easter holidays, has got off to a slow start, as problems in the mortgage and housing markets continue to take their toll and affect figures. A number of factors have contributed to the slow start to the season, with many consumers either unwilling to make a purchase at a time when house prices are expected to fall, as well as many consumers being unable to buy due to tighter credit conditions stopping them from getting the mortgage that they need.

One industry official said that those planning to sell their homes would have a shock in store, as house prices were likely to be well below the level that many might expect. He said: ‘There may well be a rather sluggish start to house-hunting this year. The real shock will come later in the spring when people who have to sell their houses for reasons of employment realise the prices are well below what they may have expected. ‘These sellers are the ‘moving part’ in the machinery of the market. They will show us how bad things are.’

Industry officials are stating that there has been a sudden and unexpected turnaround in the housing market, turning it from a seller’s market to a buyer’s market, with many homeowners struggling to sell their properties due to the various factors. The number of properties still on estate agents’ books is said that be at its highest level in a decade, and many homeowners are finding that there is little interest in their homes, with the only offers that are coming in being for well below the asking price.

Non-homeowners seem to be nervous about taking the plunge and purchasing a property at the moment, as the cost of purchasing is still high and they could find that they pay a high price for a property only to find that the value tumbles shortly afterwards.

Recent additions:

• Many first time buyers paying out a fortune on their mortgage
• £1,300 a year hike on mortgages on the cards for some homeowners
• Ease of getting a mortgage is over
• More bad news for first time buyers
• Severe lending cutbacks from smaller building societies

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