How are estate agents bearing up to the housing crisis?
September 8, 2008
The housing slump in the UK has hit rock bottom over recent months and estate agents have been reporting very poor sales figures over this period. The housing crisis has been fuelled by one disaster after another, and all of this has added up to housing transactions all but grinding to a halt in England and Wales. House prices have been falling for the last ten months, which has put many people of buying property in case the value of the home continues to fall after they have made the purchase, leaving them facing negative equity.
Credit conditions have become more difficult, which has made it harder for potential buyers to get a mortgage in order to purchase a home. Even the government’s indication that stamp duty may be suspended later in the year has resulted in many would be buyers deciding to wait it out and see if they can save money on a property purchase later in the year.
Over the past six or eight months the lack of housing transactions has sparked fears over the safety of a number of professions. Furniture removal firms have been hit hard both as a result of rising petrol costs and falling business levels. Furniture retailers and those that sell household goods have also suffered. Even the broadband industry has been reporting a reduction in take up. However, one of the worst hit professions during this time has been estate agencies, which have seen business dry up leaving them facing the worst sales levels in decades.
There have been fears that many estate agency staff members could lose their jobs over the course of this year, with some predicting that around fifteen thousand could find themselves out of work. Indeed, recent estate agency closures in London have shown just how difficult the climate has become for people in this profession. One Mayfair based estate agency has recently had to make ten sales staff members redundant and close the doors on property sales after seventeen years in business. A variety of other estate agents in the London area have seen business fall to such low levels that they have also had to give up the ghost.
There is little doubt that unless the housing market makes a miraculous recovery many estate agency staff members will end up looking for alternative work. However, there is hope for those that deal with the lettings side of things as well as the sale of property. This is because many homeowners are now unable to sell their homes in the current climate, and many are opting to put them on the market as rental homes instead. Industry officials have reported a surge in the number of homes coming onto the market to rent over recent months.
In addition to this the lack of availability and affordability of mortgages that has stemmed from the global credit crunch means that many people that may have been intending to buy a home can no longer do so. This has resulted in an increase in the number of people looking for rental homes, so the rental market is looking quite healthy at the moment due to strong supply and demand. It seems that, for now at least, estate agents are going to have to focus their attention on making the most of the letting side of the market until the housing market picks up.
Recent Additions:
- Low fee mortgages from Abbey for those with sizeable deposits
- ortgage approval levels plummet in one year
- Some signs of the weakening economy
- Landlords falling into serious arrears
- Problems with mortgages could go on for years to come
- Loss of sleep for estate agents The state of the mortgage and housing market has been in steady decline in the UK for a number of months. The number of mortgages and the availability of mortgages has dropped dramatically over the
- Many consumers could experience problems with remortgaging Some industry officials have expressed concerns that many people who are hoping to remortgage over the coming months could experience severe difficulties, not only because of the lack of mortgages on the market at present
- Increased stability for mortgage product numbers on market Since last summer when the global credit crunch swept across the UK the number of mortgage products available on the market has plummeted, with many lenders having to take a wide range of products off
- New service launched for consumers looking for mortgage advice In the current financial climate many people that are looking to take out a mortgage are also looking for quality financial advice from an experience, qualified, and trained industry officials to help them avoid making
- Offers on properties being dropped just prior to exchange A recent report has highlighted a problem that many homeowners are now experiencing, with the housing market having swung abruptly from a sellers market to a buyers market. Many homeowners are now experiencing difficulties in
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