Cancelled property purchase costs banker £500,000

Posted: 25 Nov 2008 10:34:07 GMT

Even prime property in London is now experiencing a fall in value and low sales, as one banker backed out of a sale recently despite the fact that it would cost him his £500,000 deposit.

An Evening Standard report shows that one managing director of a City investment company, who remained anonymous, decided that the purchase of the £3.25 million home could no longer be justified, and as such backed out.

The financier explained to the paper that with an underperforming market and no bonus the purchase, which appeared a good idea six months ago, could no longer be seen as such a strong investment.

Richard Gutteridge, partner at Knight Frank, suggested to the newspaper that this is happening with increasing regularity: "Six months ago this would have been unheard of.

"Deals have fallen through more and more. If someone's lost their job, or their situation has changed, they have to take a bitter decision on whether they should go ahead."

Homeowners hoping to sell a property despite the poor market may wish to sell online to avoid estate agent fees and attract canny buyers.

This will enable them to get the most out of the current market.

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