Vendors turning noses up at low prices

Homeowners in no rush to sell their homes are turning their properties over to the rental market to avoid selling at a low price during the housing correction, it has been found.

Homeowners in no rush to sell their homes are turning their properties over to the rental market to avoid selling at a low price during the housing correction, it has been found.

Recent research shows a sharp rise in the number of homes being rented instead of sold, in reaction to continuing falling prices.

The recent property price correction has been a boom time for buyers throughout the UK, as those that were able to get hold of a mortgage have been enjoying properties being reduced by over ten per cent.

However, with the Bank of England deciding to maintain high rates of interest in order to curb inflation, the housing market desperately needs more buyers to inject a faster cashflow, which this move will not encourage.

The trend was spotted in the Royal Institution of Chartered Surveyors' (Rics) letting survey, in which it was found that 43 per cent more surveyors reported a rise in instructions to let than surveyors reporting a fall.

While this is a symbol of affordable homes, and representative of the excellent position buyers are in today, it also signals that sellers may be reaching a limit concerning the number of reductions they are willing to make on the price of their homes.

As such, there is a danger of the market stagnating further if this trend continues, forcing low prices to remain unchanged for some time.