Landlord Repossessions Set to Rise Rapidly

According to a recent report in the Independent, tenants failing to keep up with rental payments is causing a record number of evictions and repossessions by landlords. This is leading to many landlords being in a situation where they need a fast house sale in order to rectify their mortgage arrears and clear their debts.

Data released by the Ministry of Justice shows that while repossessions of owner occupied homes by building societies, banks and other money lenders has stabilised at a low level for the past few years, repossessions of rental properties have risen sharply.

Some financial experts are predicting that landlord repossessions may rise by 10% over the next few months as more tenants default on rent and more landlords become in mortgage arrears.

Rent Arrears Leading to Record Number of Repossessions

During the final quarter of 2017, there were more than 15,500 legal repossessions made by landlords to evict their tenants. Although London is a rising hotspot for areas where tenants are being evicted for rent arrears, other areas in the north and north east of the country such as Grimsby, Hull, Doncaster and Peterlee have also been particularly hard hit.

Interestingly, it isn’t just lower rental value properties that have been repossessed. London and the South East has seen a dramatic rise in the number of repossessions of high value rental homes, some worth millions of pounds.

 Sell My House Fast | Sell My House Today | Sell My House For cash
Sell My House Today | Sell My House For cash

Interest-Only Mortgages Outstrip Current House Values

In addition to tenants not paying their rents, repossession of rental properties from money lenders has increased as more landlords have been unable to repay their debts as lower house prices have meant they are unable to raise enough from the sale of the property to fully clear the outstanding mortgage.

Many landlords who took out Buy-to-Let mortgages on interest-only repayments in the 1990s are now finding their mortgage expired but their investment has considerably dropped in value and is no longer worth more than the original mortgage. While this is a problem in London, it is also a particular issue in Grimsby and Peterlee where house prices have still not recovered from the 2008 financial crisis.

Need a Fast House Sale?

This could be a reason for many landlords in areas such as Grimsby or Peterlee needing to sell their property fast. In order to appease their mortgage lenders, who need a fast house sale is often needed to offset the debt and stop them sliding further into financial trouble.

In many cases of landlord repossessions, the time taken between the landlord making the claim and the property being repossessed is now an average of 41 weeks according to figures from the Ministry of Justice.

Approved property buyers and companies that buy houses fast are offering people in these situations a rapid solution. Rather than have to sell their house via the route of an estate agent. Property buying companies can facilitate a fast house sale and buy property for cash.

BuyingPropertyFast.com is a reputable property buying company which specialises in buying houses for cash in Peterlee and Grimsby.

House Prices Slump in February

For the first time in six months house prices have fallen rather than risen, creating concern of a new trend. House prices in the UK have fallen by an average of £1,350 according to data released by the high-street lenders, Nationwide, which could cause major problems for people who need a fast house sale in Doncaster.

A recent Daily Mail article explains that although house prices rose by 0.8% in January, last month saw a 0.3% dip, slowing the increase in house prices from 3.2% to 2.2% so far this year.

House Price Increases Predicted to Be Slow in 2018

The Nationwide predicts that house price rises will be extremely slow this year, citing between 1% and 1.5% increase on the 2017 values.

The average price of a home in the UK fell in February to £210,402, going against the back to back increases witnessed in December ’17 and January ’18. Although monthly figures can fluctuate wildly, the building society was keen to stress that a slump in property value can indicate problems within the property market, particularly in areas such as Doncaster where the property market has been depressed for some time and house values have struggled to get back to pre-crisis levels.

Sell My House Today | Sell My House For cash | Need to sell my house fast
Sell My House Today | Sell My House For cash

Consumer Confidence Affecting the Housing Market

Consumer confidence and the lack of spending over Christmas and the New Year is also being cited as one of the reasons for the drop off in property prices. Household incomes are continuing to be squeezed due to a number of concerns such as inflation, slow salary increases, zero hours contracts, and the looming problem of Brexit and what that may mean for employment prospects in the country.

While lower house prices are good for those house hunting or wishing to get onto the property ladder, they can cause problems for those who need a fast house sale. If too many houses are on the market, people may have difficult in securing a quick sale and may need to look for alternative ways to sell their house fast in Doncaster.

The Nationwide also reported that mortgage approval levels are the lowest they’ve been for three years, as lenders tighten up their criteria for lending and fewer people feel they are in a financial position to commit to such a big financial undertaking. This too will have a knock-on effect for the property market and could further limit the number of potential buyers.

Companies that Buy Houses for Cash Can Help

Property buying companies can offer people who are wondering how to sell their house fast a viable option. Approved property buyers can buy property for cash, which can alleviate much of the waiting and stress involved with selling a property through the conventional route of estate agents and mortgage lenders.

BuyingPropertyFast.com can offer hope to people who need a fast house sale in the Doncaster area. This will allow them to quickly sell their home before the value of their property falls further and without the worry of opening up their home to viewers and making costly renovations to improve the marketability of the property.