5
Aug
Distressed houses for sale in UK 'to increase'
The number of houses for sale in the UK concerning distressed
properties will rise, if Royal Institution of Chartered Surveyors'
(Rics) predictions are correct.
According to the organisation, there will be more sales of houses
with foreclosure orders or that are advertised for sale by the
person paying the mortgage in the next 12 months, thanks to
international regulation changes.
While European countries such as Portugal, Germany and Ireland are
set to suffer the most, Rics expects the UK to also see a rise in
distressed home sales in the current difficult conditions, Reuters
reports.
Oliver Gilmarten, senior economist at the group, explained:
"Indeed, changing international regulations are likely to start
raising the cost of capital of holding commercial property on
bank's balance sheets."
A recent report from the Land Registry showed that the price of
houses for sale in the UK have reached the value they were at the
peak of summer 2006, after an increase of 8.4 per cent in
June.