Unprecedented surge in homeowners wanting quick sale

National Homebuyers experienced a surge of enquiries last month with the number doubling compared to June 2007.

The company that guarantees a purchase for homeowners needing a quick sale witnessed enquiries jump 95 per cent in July compared to June.

Following sharp rise in repossessions in statistics released by the Council of Mortgage Lenders and the Justice Department last week, National Homebuyers’ numbers supports fears that rising interest rates could trigger a collapse in the housing market.

In a recent survey of 1,300 customers over the past 18 months, National Homebuyers found a quarter of its customers stated debt as the deciding factor when looking for a quick sale.

However, relocation and family reasons came significantly ahead, representing over 75 per cent of National Homebuyers’ purchases.

Over a third (36.8%) stated family reasons including divorce, health, retirement, death and resizing as the reason for selling their property fast.

While 39.5 per cent of customers wanted to relocate and move abroad as quickly as possible with the least possible hassle.

David Harber, National Homebuyers said: "The number of people contacting us because they are either in or are predicting financial difficulties has doubled since the beginning of this year.

“More people are uncomfortable with the state of the property market and homeowners want a fast way out. Our customer statistics are pretty shocking however, it shows how the tide is turning on the traditional property market,”

“Furthermore the phenomenal increase in property values in recent years means that owners can escape their property and still make profit on the investment they initially made. There also appears to be greater pressure to care for the family rather than get embroiled in debt or face months on the housing market.”

“People are looking for immediate equity release that doesn’t come with sitting on the housing market for months hoping for a sale. Even once a sale has been agreed, owners can often be waiting around for weeks to receive the final paperwork.”

In Canada providing everything is in order the purchase process can be completed within two weeks – at the most 90 days. The Spanish market can exchange contracts within a matter of weeks.