Homeowners cut property prices under mortgage pressure
News Category: Industry News
Published: 23-Jun-2008
This article was brought to you by Rentman the premium property management system.
Homeowners have cut asking prices on their properties by 1.2 per cent on average in May, according to research by Rightmove.
The property website's findings could make good reading for letting agents, who may see an influx of tenants when they finally sell up.
Recent research by Shelter also suggests that some homeowners will not be returning to the property market in a hurry.
Figures revealed that one in 12 found paying their mortgages a "constant struggle".
Meanwhile one quarter indicated that the high housing costs had caused them to suffer depression.
Miles Shipside, commercial director of Rightmove, explained that sellers were finally realising they cannot get away with overpricing their properties.
He told ITN: "In spite of the lowest housing transactions for 30 years, new sellers had been coming to the market asking for record prices.
"For most sellers that will mean whatever they thought of asking for their property at the peak of the boom, they need to take at least ten per cent off. Otherwise their property will stagnate."
Find out more about letting agent software
