Repossession threat may trigger sales

Posted: 16 Feb 2009 08:21:57 GMT

Homeowners may be tempted to downsize their homes this year as the threat of repossession grows, according to new figures.

Previous estimates from the Council of Mortgage Lenders suggested that repossessions would rises this year to 75,000, but recent research from Property Portfolio Rescue (PPR) shows that that figure may in fact reach 82,000.

The Association of Home Information Pack Providers (Ahipp) released a statement regarding figures from Property Portfolio Rescue (PPR): "The number of enquiries received by PPR from individuals and small businesses looking to sell properties quickly surged by 118 per cent last year.

"However, PPR believes this is just the tip of the iceberg in terms of the number of businesses in trouble and while recent government initiatives are welcomed, they have come too late to help small businesses that were showing signs of distress six months ago and are now at a point of no return."

As repossessions are set to soar there is a likelihood that homeowners may choose to downsize, in order to take advantage of both lower house prices and low interest rates on new mortgages.

Homeowners hoping to downsize may benefit from selling their home online, which could attract more buyers than a traditional estate agent's window.



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