The length of time it takes to sell a repossessed property has fallen, with the time to exchange now running at less than half that for standard property sales.
Data from Spicerhaart Corporate Sales for the year to the end of April shows that repossessed properties take an average of 21 days to exchange from the sale being agreed, compared with the average of 59 days for standard property sales, according to figures from Hometrack.
The average time taken for a repossessed property transaction to complete from the day of repossession is now 106 days, 23 days quicker than a year previously. The average time from repossession to market is nine days.
Mark Pilling, managing director of Spicerhaart Corporate Sales, says: “Repossessed properties are attractive for investors and first-time buyers alike, as their chain-free nature allows a fast and efficient transaction with no delays caused by other parties’ involvement.
“While the number of repossessions may be falling there are still several factors that could lead to a reversal of this trend.”
He adds: “Potential rises in interest rates, increasing unemployment and diminishing support for forbearance measures could mean that borrowers struggle to meet their mortgage repayments in future, possibly resulting in more repossessions.
“It is essential that asset managers continually asses their practices and put the best measures in place to help lenders sell these properties and limit the pain for all concerned.”