Possessed property sells at fastest ever rate

The number of days taken to sell possessed property continues to reduce, according to the latest data from Spicerhaart Corporate Sales.

Possessed property took on average just 68 days to sell in May, 9 days faster than in April, and 18 days less than in June 2009. The six-month average from November 2009 to April 2010 was 75 days to sell, 5 days less than the 80-day average of the previous six months.

Not only are repossessed properties selling faster, Spicerhaart is also achieving sales at above their market value at an average of 103% over the last six months.

In 2009 the average number of days from possession to completion was 124; to date in 2010 this average has reduced to 109 days.

Possessions took on average 24 days to exchange from the sale being agreed in May, less than half the national average of 58 days for standard property sales.

Mark Pilling, managing director of Spicerhaart Corporate Sales, commented: “Repossessed properties are taking less and less time to sell, attesting to the continued popularity of chain-free properties amongst investors and first-time buyers.

“This is excellent news both for lenders and customers. The primary method in which we can ensure the fair treatment of customers in the repossession process is through minimising their shortfall. Achieving the best possible price in the shortest possible time is the best way to accomplish this.

“Ensuring lenders the best results also benefits the property sector as a whole. Though the number of repossessions has fallen in recent months, the uncertainly surrounding the impending government cuts and likely resulting unemployment may result in lenders losing confidence. Maintaining the best results for lenders in the event of borrowers’ shortfall may mean lenders can maintain, or even improve mortgage availability in the future.”