London properties remaining on market for longer
December 10, 2007
The property market has taken a hit over recent months due to a number of factors. This includes falling property prices, high rates of interest, and the roll out of Home Information Packs, which will be required for residential properties of all sizes across England and Wales from the middle of December.
However, according to a recent report Londoner are still over optimistic about house prices in the capital, despite the length of time that it is now taking to sell a property in London.
Many homeowners that are looking to sell have put their properties on the market in the weeks leading up to Christmas, but industry experts state that unless they become more realistic with regards to the asking price they could find that their homes are still on the market when spring comes around. The length of time that properties are remaining unsold in London has soared to around 87 days on average according to reports, and this is the longest period that homes have remained unsold in five years.
One industry official stated that Londoners are expecting too high a price for their homes, and that this is no longer realistic given that house prices have fallen for three consecutive months. London house prices have already taken a hit in excess of 5%.
The official stated: ‘Whenever market sentiment turns, it always takes about 90 days for vendors to believe it. We are in a period where a lot of sellers are still not prepared to believe the world has changed.’
Another industry professional stated: ‘Lots of whammies came at the same time - the introduction of home information packs, the failure of Northern Rock, the negative press about the US sub-prime market. They all hit about three months ago. That is why it is taking so long to sell. The only properties that are moving are the ones where a price correction has been taken into account by the seller. The ones that are hanging around are where the vendor thinks it will be all right on the night - but it won’t be.’
Alan Wright
10th December 2007
Recent additions:
- Banks’ main defence for test case rejected by OFT
- Unauthorised Bank Charges
- HIPs to be rolled out to all residential properties
- Many consumers suffer from ‘finance phobia’
- Two year fixed rate go up slightly
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