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Frozen Property Market To Continue 'well Into 2012'

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Homeowners desperate to sell were warned today that Britain's property market will remain frozen until 2012 at the earliest.

Winkworth, a leading firm of estate agents, said it is expecting another slow year, with far fewer homes finding a buyer than during the boom years.

It will be the fourth year that millions of homeowners have faced a major battle to sell their property, a nightmare which began in 2008.

Many potential buyers are too broke to buy, too scared about what the future holds, or are keen to buy but cannot get a mortgage.

Dominic Agace, chief executive of Winkworth, said: 'We anticipate another low volume year in 2011 with transactions at a similar level to 2010.'

Official figures, from HM Revenue and Customs, show the number of property sales has collapsed since the credit crunch struck three years ago.

In 2007, nearly 1.3million properties were sold for more than £40,000 in Britain between January and September.

This year, just 667,000 - around half this number - have been sold during the same period.

Mr Agace said Winkworth used to sell around 4,500 properties every year in the years leading up to the credit crunch. Last year, it sold just 2,900 homes.

He said the country's mortgage famine, which is making it difficult or impossible for many young people to get a loan, is one of the most major problems.

The majority of young people who manage to get onto the property ladder have had help from their parents who give them money for a deposit, according to the Council of Mortgage Lenders.

Last week, it said that net mortgage lending will be just £9billion this year, the lowest level since 1980, a sign of the country's mortgage crisis.

Winkworth said 'the impact of austerity measures, especially outside of London' will be another major determinant of what happens next year.

In a blow for those who cannot afford to buy, the chain said it expects rents will keep on rising, up another five per cent.

It said there is an 'ongoing shortage of supply', forcing people who would prefer to buy but cannot afford to fulfil their dream, paying record rents.

The average rent has hit an all-time high of £691 per calendar month, according to a separate report from LSL Property Services.

Overall, Winkworth, which runs a chain of 88 estate agencies, said it expects prices will rise by five per cent in the 'prime' market. This is houses worth more than £700,000.

But the cost of 'less prime' properties, where prices have fallen more sharply, are likely to remain the same.

The latest report from Rightmove, the property website, also revealed evidence of the struggle to find a buyer.

The average property which is up for sale is staying on the market for a record-breaking length of time - 'more than 100' days, the longest amount of time needed to find a buyer.

In February, it was just over 60 days but it has been gradually climbing ever since to reach a new peak.

Miles Shipside, a director of Rightmove, said anybody who wants to sell urgently may need to slash their asking price to offer 'bargain basement prices.'

Over the last month, the average asking price has dropped by 3.2 per cent, the biggest monthly drop since December 2007, to £229,379, equal to a price cut of £7,470 in just four weeks.

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Really surprising, I got a letter through my door this morning from local branch of winkworth saying desperately seeking sellers/properties as prices have gone up, and that i would be be plesantly surprised to find up how much house worth.

I am STR and was a bit :huh::huh::huh: to read their letter.

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"Homeowners desperate to sell... buyers who are too broke to buy."

When is it going to sink in?

So Winkworth also believes unemployment, inflation and interest rates will stay the same too. Wonder where they get their intelligence.

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So Winkworth also believes unemployment, inflation and interest rates will stay the same too. Wonder where they get their intelligence.

Winkworth believe nothing of the sort. They don't care and are not interested. They need to sell some property this month to pay their staff and office costs. If the moronic public will buy and sell as a result they (all EAs) will tell you prices of houses are pegged to Bolivian coffee prices. Like the newspapers they just tell idiots what they want to hear to make money from them.

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"Homeowners desperate to sell... buyers who are too broke to buy."

When is it going to sink in?

So Winkworth also believes unemployment, inflation and interest rates will stay the same too. Wonder where they get their intelligence.

probably from my mum

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note the use of lots of emotive words:

struggle, desperate, battle, nightmare

if the market place is working in rental property - rents up 5% because of shortage of supply versus demand - why does this not factor into asking sale prices being reduced (which are driven by the market after all) :(

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Breaking News: Ray Boulger to record charity single put pressure on banks to lend more to first-time buyers. It will be an adaptation of Madonna's 'Frozen'.

You're so consumed with how much you get

But I need some help with my buy to let

You're frozen

When your vault's not open

Mmmm, if they could get a loan

Mmmm, then I could sell my home

Mmmm, give your cash to me

Mmmm, you hold the key

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Melanie Bien was on Wake Up to Money this morning opining that the reason why sales volumes remain low is 'unrealistic FTBs making silly offers'. Vomit.

I'd forgotten about Bien. When Boulger's company (Charcol) went tits up she pretty much took over from him as the face of the VIs. Now he's back we don't see so much of her.

Let's hope this latest media push from the lenders and EAs doesn't involve both of them, twelve times a day each :(.

We could have a Boulger & Bien week where members change their avatar to either Boulger or Bien, depending on their gender, now that would really annoy them.

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