Recession is deepening its roots in the UK economy and literally every sector is being affected by it. Among the most badly affected ones is the housing sector and the prices of houses continues to fall at an alarming rate. The latest figures show that there is a decrease of nearly 16% in January.
Buyers are still not willing to take the initiative and are reluctant to make an investment in this area. House owners on the other hand are unable to keep up with their mortgages as many of them have lost their jobs and have therefore lost their income source.
As the repossession rate has hit its highest level, more homes are becoming empty and yet there are not enough buyers in the market to buy a property. One of my friends has a nice big flat in Lancaster. He wanted to sell his flat and his flat was valued around 170k by an estate agency. He had made all his efforts to sell the flat but despite of reducing the price to 120k, there is no willing party to jump in.
I had a visit to his place the other day and I was surprised by all means of why his place could not be sold even at 40% less than the valued price…
I had to advise him to be patient and wait for the good times to come back and then sell it at its deserved value and this would be my advice to all home sellers to be patient and not to get in panic. There is always a light at the other end of the tunnel.
One other point in this regard is that: the pound is also struggling at this point, so it is not a good time to get cash for your property anyways.
It would be better to wait for the good times to come back and then make the decision.
