One in four buyers pulls out of buying a home
August 15, 2008
The situation in the housing market has been going downhill rapidly over recent months, and estate agents have reported very poor sales figures, with many sellers finding it difficult of even impossible to sell their homes. Many would be buyers have fund that they are unable to get a mortgage to buy a home due to the tighter credit conditions that have come about as a result of the global credit crunch. Many others have decided not to take the plunge because they are fearful that house prices could continue falling once they have purchased the property.
The situation has been reflected in the number of buyers that have been pulling out of purchasing a property after making an initial offer. A recent report has suggested that around one in four, or 40%, of potential buyers are making an offer on a property and then pulling out in some areas of the UK. The data comes from the Agents’ Summary of Business Conditions from the Bank of England, and officials state that this gives an indication of the problems that have hit the housing market of late.
Officials have said that as a result of this situation a rising number of housing chains are falling apart, as the person at the bottom of the chain is pulling out in up to 40% of cases. One official said: ‘In the market for established homes, more transactions were falling through, with some estate agents reporting a cancellation rate of up to 40 per cent recently. That was partly due to the unwillingness of many sellers to accept a lower offer.’
An estate agent added: ‘The credit crunch has buried any chances most first-time buyers might have had of getting on the property ladder. Mortgage finance hasn’t been this hard to come by for 15 years - but for landlords this is a cloud with a gold-plated lining.’
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