Print

A 'forced' solution to London's 'deadlock'?

Jaimie Kanwar

Home sellers may be forced into drastic action if financial constraints get any worse, claims one company...

According to Cluttons, a leading London estate agent, the current stand-off between house buyers and sellers in the London property market will start to break as forced sales begin to appear in many areas of the Capital for the first time.

Richard Cotton, Senior Partner of Cluttons, explained: "Financial constraints are the early driving force behind many forced sellers, as fixed-rate deals finish and City pay rises fail to come to fruition.

"Those who have overstretched in order to secure their mortgage are increasingly feeling the pressure, with current unemployment fears adding to market jitters.

"Sales of second homes are also set to increase at reduced prices, as owners draw in their finances and sell before the market slips further.

This could lead to a much needed injection of energy back into the market, with those forced to sell offering appealingly low prices to buyers who have been prepared to bide their time to secure the best deal.

Mr Cotton continued: "Forced sales will inject some energy into the market and will break the current deadlock between buyers and sellers.

"A more sensible price achieved through a forced sale can set a benchmark for home values on a whole street in London. This will allow anxious sellers who need to strike a deal and desperate buyers who have been trapped by high prices, a chance to go ahead with a purchase".