Even with the numbers of house repossessions seemingly on a downward
trend over the last few months, there are still thousands of repossessed houses for sale in every county in the UK. Given the way the UK’s economy is right now, that is unlikely to change in the near future.
Most would agree that while it’s a sad fact that there will always be those who, for whatever reason, get behind on their mortgages and end up subject to repossession orders, these repossessed houses need to be sold so that banks can recoup their debt – and there need to be buyers out there who want to purchase them.
Of course, there will always be property investors scouring upcoming house auctions on the look out for repossed houses to do up and sell on or rent out, but the numbers of “ordinary” residential buyers stepping into the world of the property auction looking for cheap houses for sale is also on the increase and it’s really not surprising.
Given that house prices are now on average nearly 10 times the average yearly salary, (Average UK House Price = £246,000 vs Average UK Salary = £25,800) for many the promise of buying a repossessed house offers one of the best ways to be able to afford a property and get out of the rental market. With the financial climate as it is and many braced for a treble whammy – job losses plus higher outgoings due to the increase in VAT, plus an almost certain increase in interest rates – the number of people looking for repossessed houses for sale can only get bigger.
Add to this the rise in the general public’s interest in getting good deals on property, property investment and property development spurred on by the myriad of TV programs on the subject, and it’s amazing that anyone would go down the normal channels of buying property through estate agents – it feels like everyone’s buying at auctions nowadays and it really is the most sensible way to proceed when searching for a cheap house.
All of these factors contribute to a boost in the social acceptability of buying repossessed houses. This can only be a good thing, both for those who need affordable property to live in and those whose businesses rely on selling repossessed houses.