Property Rescue Blog

Figures have just been released from a national survey that show a 10.5% drop in the price of homes during the last year.

This drop has confounded the commentators who not so long ago declared that the property price fall was nothing more than a blip or a realignment of an over-priced market.  By anyone’s standards, a 10% fall is massive and indicative of the rot that appears to be spreading through UK property.

When there are plenty of problems close to home it is forgivable to ignore what’s happening on the other side of the Atlantic, but the state of the US housing market has a direct correlation with the situation here.  American residential property is the biggest market of its type in the world.  Consumer confidence in the States is directly linked to home values, and home values are continuing to drop.  As US spending decreases, the demand for goods diminishes, and so the ripples spread out into the global pool.

A drop in property prices will have limited effect for those who already own their homes outright, or have a relatively small mortgage (small as a percentage of the property’s overall value).  Although people feel less well off when their home is worth less, in general, those who can afford to sit tight on their investment of bricks and mortar will probably choose to do so until the situation levels off.

The buy to let market has already taken a hit.  As values have dropped, investors have become nervous and some have already liquidated those assets.  It may be that this period of ‘disposals’ has now passed; if so, those that remain in the buy to let market will probably elect to ‘sit tight’ too.

The people most affected are those who are facing the very real possibility of negative equity.  Where mortgage repayments are still affordable homeowners are likely to sit out the storm and wait in hope for future price corrections.  But in cases where mortgage payments are in arrears and other loans are mounting this may not be an option.  The next Bank of England meeting is expected to produce a small cut in interest rates, which – should it happen – may provide relief to some.  People with severe and long-standing financial problems however are likely to remain in real threat of losing their homes.

Property Rescue is a company that will buy your home from you regardless of the economic climate.  The offer they make will be below the current market value, but remember – this is a market where values have been sinking fast and may go down even further.  Against this backdrop, the Property Rescue offer becomes very attractive, especially for people who simply cannot sell their homes or are facing the possibility of repossession.

One of the Property Rescue team will be pleased to explain to you how this offer works and the additional money saving benefits you can achieve by selling your home in this way.  They will give you a clear explanation and won’t put pressure on you to proceed unless you are completely satisfied that this is the right course of action.  Why not call today to see how Property Rescue could offer a way out of your current financial crisis?