New Initiatives to Get Property Market Moving
Sarah Beeney has launched a website offering advice on how to kick-start the property market during the downturn, which involves all members of the chain rather than simply first-time buyers.
Moving house is stressful at the best of times, let alone in the current climate, as there is no guarantee of completion until the keys are in your hand. If one buyer pulls out then the whole chain falls apart, but Sarah Beeney - the popular TV presenter, has launched a site offering advice on the best way to tackle the current property market.
The website, completingchains.com, went live last week and is aimed at getting the stagnant property market on the move. She cites that the main problem in the current market is that first-time buyers are unable to start the chain due to the lack of available mortgages, and as a result no-one else is moving.
Property prices are predicted to fall by 30% over the next year and Beeney suggests it makes good financial sense for those in the chain to help the first-time buyer now, rather than wait 12 months and have every house price in the chain fall by 30%. If first-time buyers are struggling to find 30% of the house price, then spreading this deficit throughout the chain will enable everyone to move quickly and will ensure stronger savings in the long term.
Hamptons, the property specialist, have also been advising those at the top end of the market to step in and buy at the beginning of the chain, and the properties can then be used as a rental opportunity. By doing so they get the market moving and, rather than risk waiting for a few months and the price of their home falling drastically, they are able to move home and gain a solid investment at the same time.
First-time buyers are the weak link in the property chain at present, so in order to prevent further financial losses people will need to start thinking more creatively in order to kick-start the market.
