by Mark Johnston
Hundreds and thousands of home owners are currently living in property that they cannot sell. Trap in their current house because of a slow market or losses on the housing market.
In the last twelve months over one million home owners have tried to sell their current homes but have found that they are unable to attract buyers or in some cases any interest at all.
Their plight has been magnified as many needed to move to take up a new job offer or make room for a new addition to their family. Not been able to move house because they cannot sell their current property is having a crippling impact on their life.
The current financial crisis and government cost cutting exercise has also created new reasons home owners want to sell their property. Many can no longer afford their mortgages and are trying to sell their house as a way of avoiding further debt problems but cannot.
The study that highlighted the plight of these struggling home owners was published by the Spanish banking giant Santander. The Bank reported in its study that the number of failed sellers were twice the number of successful sellers . If the report is to be believed this means that home owners looking to sell only have around a thirty three percent chance of doing so.
Over 700,000 home owners have sold their property since June 2009, but the report published by Santander found that well over one million had tried and failed to sell their home in the same period.
Phil Cliff a spokesperson for Santander said: ‘Sellers are having a hard time. Many buyers are too because they are unable to secure a good mortgage deal, often because they find it difficult to save a sufficient deposit.’
As part of the report, home owners were asked why they had not been able to sell their current property. Most of the home owners who were asked suggested that they were not able to find a suitable buyer or a suitable offer that they were willing to accept. This probably suggests that many home owners are receiving offers but potential buyers are not willing to pay the full asking price of the property.
The research has been published at the same time as Mortgagerates.org.uk have been reporting that many first time buyers are finding it difficult to get a mortgage either due to their low credit rating or commonly because they cannot afford the large deposits that Banks and Building Societies are asking for to secure a home loan. The Council of Mortgage Lenders said that the average first time buyer puts down a 24% deposit which is still a large amount of money. With average house prices around £150,000 a 24% deposit would equate to around £36,000 which is well out of the reach of many young buyers especially when average annual earnings in the UK are around £22,000.
Many young buyers are now having to look to their parents for help to either provide a deposit or to effectively become a loan guarantor on one of the new mortgages being offered by some providers.
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