Homeowners Finding Buyers for Starter Homes to be a Rare Occurrence in Current Economy
Homeowners seeking to sell their starter home are finding it difficult. Buyers are in low numbers, especially buyers looking for a starter home. This has left those homeowners that are wanting to upgrade to a larger property unable to do so without a way to hand off their current property. Buyers are rare in this economic climate due to the tightening on the lending process and their inability to obtain approvals or their deposit.
It is estimated by the government that there are more than 1.4 million households that want to own their own home and have been shut out of the market. This has prompted government officials to push lenders to find creative ways and products to bring first time buyers back onto the property ladder. Without those first time buyers the property ladder becomes frozen with no one coming in and no one moving up. Meanwhile, some homeowners have decided it is not the time to sell but the time to do renovations and improvements on their own property. No doubt, this is the reason for some homeowners to seek remortgages and that is to secure funds for improvements to their current property. In a time when house prices are falling and equity is disappearing it is one way to build the value of a home. In the end once the economy changes around and buyers are back to shopping in full confidence homeowners will have improved the value of their property and increased its resale value. It is at least one alternative with the market being unfavorable to the sellers at this time.