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Newly published statistics from the National Association of Estate Agents indicates that Estate Agents have more unsold homes on their books than at any point since 2009. Furthermore, although there are regional differences in the statistics, it appears that this is a problem being experienced through- out the United Kingdom
This increase in unsold homes is a result of a drastically heightened demand from Home Owners desperate to move.
Given the current economic woes many Home Owners are opting to relocate in order to downsize, to reduce costs by moving closer to work or simply to go into rented accommodation. However, it would seem that many Home Owners and indeed some Estate Agents are at fault for being unrealistic about the sale price they are likely to achieve.
Many Home Owners are attempting to sell their home for a sale price, which would have been appropriate in previous economic conditions. Some Estate Agents are quoting higher valuations on properties in a bid to secure business. Sadly, in many cases the required sale price of properties is failing to be achieved leaving home owners in the lurch.
It remains to be seen whether the gross over-estimation of property value on the Home Owners behalf is due to an unfortunate lack of insight into current property market conditions or whether it is due to a genuine need to sell at given price because if they do not they would simply be unable to meet the redemption costs of their current Mortgage.
In some cases Home Owners have taken out a Mortgage, which accounts for a large percentage of their property value and are tied to their Mortgage unless they can meet an unrealistic sale price for their property.
The problem faced by Home Owners is further compounded by the fact that there has also been a drop in first time buyers in the market place. Statistics show that the drop in first time buyers is around 3%.
Industry experts are attributing this dire situation to a lack of Mortgage lending, suggesting that like many others, first time buyers are finding it exceptionally difficult to secure a Mortgage
Over the last few years the Government have called on Mortgage lenders to reconsider their lending criteria and increase the number of Mortgages being agreed. However, many industry leaders feel that although many Mortgage lenders may have relaxed their lending criteria, they have not done so enough to prompt a significant change.
Mortgage lenders will no doubt suggest that their inability to grant many people a Mortgage is due to the vast amount of credit that people have taken out in recent times, which prevents them from passing the Mortgage lenders affordability checks.
Many people are now finding that the credit they have taken out since agreeing to their Mortgage is hindering their chances of getting a new Mortgage agreed, even when they have repaid their other credit commitments without issue.
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