Banks target equity rich buyers
Number of homes for sale falls
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The number of homes coming onto the property market has hit its lowest level for eighteen months, according to an estate agents’ network.
Rightmove said the average number of unsold homes per estate agency dropped to 69 after 17 months in the 70s – its lowest level since February 2008. It added that 29 per cent more properties were coming off the market than coming onto it.
The firm said most sales depended on buyers having substantial equity in their homes. It added that some lenders were targeting equity rich buyers with low mortgage interest rates rather than putting out good deals for first time buyers. It warned that such ‘cherry picking’ could lead to further price falls in areas where buyers could not get mortgages.
Miles Shipside, commercial director of Rightmove, said: ‘Finance greases the wheels of the property market, and it is anybody’s guess when we might see the necessary level of competitive funding return. Frustrated home hunters should note the expected 10-year timetable to wind up Lehman Brothers, giving a clear indication of the time required to rebuild the banking system.’
Nationally average asking prices rose 0.6 per cent in September but were still 1.5 per cent down on last year.
Only East Anglia and the south east saw price rises across the year. Both regions plus Greater London saw prices increase between August and September.
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