MG Norwich Learns UK House Sales Down 1% in 2011

Jan. 27, 2012 - PRLog -- HM Revenue and Customs believe these recently released figures to be some of the lowest totals on record. Without doubt a huge factor that has reduced the number of sales is that prices are down so people are unwilling to sell their house at what they believe is a low value. The record low was in 2009 when only 848,000 houses were sold. The property market has now seen a three-year slump. Analysis believe that sales are half what they were pre-banking crisis in 2007.

A spokesperson for MG Norwich remarked “These figures are particularly worrying because house sales are normally a good indicator of how the economy is faring. In times of prosperity people can borrow for mortgages and investors put their money into property, that just isn’t happening at the moment.”

MG Norwich is aware that a great deal has been made of the fact that young people are finding it increasingly difficult to get onto the housing ladder. They don’t have the spare cash for a deposit and even if they did most of them will struggle to find a mortgage.  “The fact that young people are no longer able to get onto the property ladder is surely a factor in this slump of sales.” This is re-iterated by Geoff Meen who is a professor of economics at the University of Reading. He said “If you have very poor levels of credit availability, for first-time buyers and people moving home, you are going to get low levels of sales taking place.”

The Financial Services Authority (FSA) is to set in place new regulations in 2013, which will ban loans to people who cannot prove they have sufficient incomes to repay the home loan. “After a torrid time for the economy, which has largely been caused by lending which cannot be repaid, we believe at MG Norwich that this will be a step in the right direction to prevent problems like this again.”

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