Sellers 'wake up' to worsening market

People looking sell London property and real estate around the country are waking up to a new reality when it comes to setting their asking prices, according to one expert.

Lucian Cook, director of Savills residential research, has suggested that fewer people are looking to buy houses or apartments around the country and as a result property prices are falling.

Accessing mortgage loans is becoming increasingly difficult as lenders look to avoid potential risks and the trend could mean more and more people will be looking to rent property in London.

Reflecting on recent research from Rightmove, Mr Cook maintained that people trying to sell their properties are reducing their asking prices dramatically month on month.

"Part of that is driven by the fact that mortgage availability is so constrained and costs of mortgage, particularly if you haven't got significant equity to bring to the purchase, has really increased as a result of the credit crunch," he explained.

Meanwhile, Hometrack recently revealed that property sales completed last month on average reached 91.6 per cent of the asking price, which is a four per cent fall on the figure for June 2007.

Published 23rd July, 2008

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