Homeowners learning of 'forced downsizing'

Posted: 22 Nov 2008 12:52:57 GMT

            Property News - Homeowners learning of 'forced downsizing'

The National Association of Estate Agents (NAEA) has reported that the nation's homeowners are in danger of becoming subjected to 'forced downsizing', a Times report has confirmed.

Research from the NAEA found that half of the estate agents it spoke to reported that 20 per cent or more of sellers are downsizing not out of choice but as a result of acute financial pressure.

The Times suggested that only those who opted for mortgages of 95 per cent or more during the property boom would be at serious risk, but the NAEA figures suggest around one in ten is now affected.

Marcus Dixon, associate residential researcher at Savills, told the newspaper: "There are more people downsizing now, some because they can't afford monthly payments, perhaps because they worked in the City, bought big houses, but have now lost their jobs.

"Others have lost savings, or need to release equity from their house as quickly as possible to pay for their lifestyle."

Homeowners looking for a quick sale with maximum profits may wish to bypass expensive estate agents and advertise a property online.

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