Bargain Hunters Are Tracking Down Repossessed Homes Online

Bargain hunters are turning to the internet in search of repossessed homes at rock-bottom prices. With the property market looking increasingly fragile across parts of the country, and recent price falls reversing some of the gains made in 2010, many are seeking investment opportunities online.

According to Experian Hitwise, which monitors more than 4,500 property-related websites including the big property portals, the number of searches for “repossessed homes for sale” is up 163 per cent on last year.

Buyers are targeting some of the 36,300 properties repossessed last year from homeowners struggling to pay their mortgages during the recession. As the Government’s austerity cuts take effect and the cost of borrowing increases, buyers targeting repossessions may have an even larger number to choose from.

Although the Bank of England did not increase interest rates this month, most experts agree that a rise is coming, to help to stave off growing inflation. Higher mortgage costs could prove too much for financially stretched homeowners. The Council of Mortgage Lenders forecasts 40,000 repossessions and 180,000 mortgages in arrears in 2011.

For those looking for discounted properties, now could be the time to act. Robin Goad, director of research at Experian Hitwise, says that searches for property to buy were twice as popular as searches for property to rent in March. “This indicates a change in attitude and search behaviour from December 2010, when search volumes for buying and renting were on a parity,” he says.

Hitwise data reveals that the five property hotspots in the UK at the moment are Hull, Slough, Nottingham, London and Leeds, in that order. Despite a brief recovery at the end of last year, Land Registry figures show that prices in Hull are 18.5 per cent below their peak in June 2008, with an average price of £74,347. Values in Slough have fallen by 12.5 per cent since their high point in February 2008 and the average price now stands at £168,250.

Separate data from Zoopla, the property portal, shows that price falls are widespread. It records falls in each of the past eight months. Average values are now more than 11 per cent lower than they were last summer.

In England, homes are worth £26,240 less than last July, while in Scotland they are down by an average of £21,489 and in Wales by £17,205.

The differences between the English regions are most stark. The North East has been the hardest hit — down 14 per cent to £146,242 since July last year, while London prices have fallen by 7.59 per cent to £378.295 over the same period.

Nick Leeming, business development director at Zoopla, believes that the recent dip in prices and notable variance between regions have created buying opportunities. And it looks like those logging on to his site agree. The number of visits is up by 72 per cent on March last year and the number requesting viewings has jumped by 333 per cent.

He says: “The first half of 2010 provided strong gains in market values, but since last summer economic uncertainty and lending constraints have eroded these gains and put downward pressure on house prices.”

James May, founder of Prospect Investors Club, comments; 'Repossessions are a fantastic way of securing properties at a low purchase price. However, always be aware that once you do find a property it will actively stay on the market until the point of exchange. This could mean counter offers may be received on the property leaving you to match the higher offer or withdraw from the sale.

'Sometimes repossessions really aren't the best way to purchase a low priced property. My company works heavily with BMV properties which aren't repossessions. Not only do they also give you the great returns repossessions do but there are also no worries that other people are viewing the property and may better your offer.

'Before you look into repossession properties, speak with a professional. Advice is critical when making a property purchase, so ensure you are speaking with the right people who have the right knowledge.'

Prospect Investors Club offers advice on all types of property for Investment purposes. Contact us today for more information.

Source- Thetimes.co.uk