Sell rent back schemes could be one way out of a housing market that's a long way off from a fast recovery.
Sell rent back schemes could offer an exit strategy for home owners who are struggling with debt, facing arrears or have very real concerns about house repossession. There is a percentage of homeowners who are set to become victims of the credit crunch due to bad timing and poor luck. Buying property when prices were at their peak and when lenders were pushing 100% mortgages – some at over five times a person's salary – means these homeowners are vulnerable to repossession in today's climate. Sell rent back schemes offer one way for those burnt by the housing market to sell their homes and solve their financial crisis, while staying put as legal tenants.
Sell, Rent Back – The Future Looks Bleak
Although for some homeowners it's worth hanging on until the financial crisis is over, some simply can't afford to cling on through such tumultuous times. Sell, rent back schemes are one of the few options left to those whose mortgages, utility bills and general cost of living, combined with any other existing debts or loans, simply outweighs their income leading to escalating debt. Taylor Wimpey – the UK's largest house builders – believe there will be no recovery in the property market in the near future, despite the 1.5 percentage cut in interest rates. The news means for those property owners clinging to a financial thread, a sell rent back scheme may be an increasingly attractive alternative to the very real risk of repossession.
Sell and Rent Back as Sales Slump
Taylor Wimpey has reported a huge slump in sales despite lowering property prices. In fact, many house builders are offering a range of incentives, including paying stamp duty and solicitor fees, offering interest-free loans, vouchers for new carpets or a range of luxury gifts. And still the housing market is falling with nearly ?1,000 being wiped off the average home every week in recent months according to a survey by the Halifax. With hardly any buyers on the market, those who need to sell because of financial difficulties may have few options – a sell and rent back scheme offers one way out. Mortgage approvals were down 67% this September compared to last September illustrating how few buyers there are – the impact means some estate agents are struggling, selling on average one property a week. More homeowners could be turning to sell rent back schemes in the light of the difficult situation. A spokesman from Taylor Wimpey told The Telegraph newspaper: “We remain of the view that there will not be a recovery in the UK housing market in the short term.”
Looking for a Sell House, Rent Back Scheme? Speak to Property Rescue
If you need help to get a sell rent back scheme for your property, contact us at Property Rescue. We’re committed to helping you, whatever your circumstances. Property Rescue has helped hundreds of homeowners, rescuing them from desperate situations. With Property Rescue you can rent back with confidence.
Call freephone 0800 1313 999 for help today.
>> Return to Sell Rent Back Articles