Bournemouth`s local estate agency `Bournemouth Flat Company` decided not to sell houses any more and is focused on lettings due to surviving at the current economic climate.
By Kubra YelkenciCredit crunch carries on hitting different business areas. It is time to tighten their belts for local estate agencies. The office manager of Bournemouth Flat Company Miss Hannah Lister,29, commented on possible effects of credit crunch on housing business and said “Because there are so many on the market there is more competition so people having to worry about prices. Yes the credit crunch is having an effect on us.”
According to Miss Lister, decline on sales figures was expected in the market for a few months. “House prices were going down in the South of England last months. We were selling houses below the market value. Normally, property prices always go up. But the graphic was up and down. All those were signs of stress in the market. “
All those drawbacks made them wring their hands as a company and they stopped selling houses as a part of their survival plan. “We don`t sell houses any more. We used to sell but not now. Because we are not selling any. Nothing is selling. Obviously with the action the problems happening we just stopped buying properties so we decided to stop the sell a precident to business so we focused on only lettings.”
What is the connection between Credit Crunch and House Prices?
Banks rely on the liquid transfer of cash between each other to fund their loans to consumers. Now these loans have dried up, it has made it impossible for them to finance mortgage deals. If there are no mortgages available, buyers cannot buy houses. Sellers have either to withdraw the property from the market or accept a much lower price.