Repossessed North homes target of property investors

Dec 14 2008 by Robert Weatherall, Sunday Sun - www.sundaysun.co.uk

PROPERTY investors hoping to land homes at bargain prices are targeting the North.

Estate agents in the region say they have seen a massive increase in the number of people inquiring about properties.

And most are from people looking to snap up repossessed homes which are being auctioned.

Estate agent Stuart Allan of Broadley and Coulson in Bishop Auckland, County Durham, said: “Repossessions are selling for competitive prices at considerable discounts over neighbouring properties as banks and building societies are determined to reduce their repossession stock.

“Cash buyers are in a very strong position and are driving down the house prices.”

Joanne Longstaff of Tyneside-based Sarah Mains estate agents claimed that more people than ever are visiting their auctions. She said: “We have noticed a definite increase in the number of people who are choosing to buy at auction.

“I think people are realising that prices have gone as low as they are likely to and that, for those people who can get a mortgage at the moment, it is a good time to invest.”

In the past few months, the Royal Institution of Chartered Surveyors has reported a 60 per cent increase in the number of new buyer enquiries.

The figure means there are more people looking to buy homes than at any other time in the last two years.

But the increased interest is not translating to actual sales, which are remaining relatively low.

As more families are going through the nightmare of being turfed from their homes onto the streets, banks and building societies are selling the repossessed homes at cut-down prices at auction to try and quickly recoup some of their money.

Edward Watson, of Newcastle-based Edward Watson Associates, said: “We have identified several cash buyers that have returned to the market who are purchasing from distressed workers, obviously at low prices. If an investor is building a property portfolio for the long term, now is the time to buy.”