Surge in instructions expected as City slashes jobs

London agents Cluttons are forecasting a steep rise in new instructions later this summer because of a wave of forced sellers.

They say that further City redundancies plus a surge in home owners coming off two-year tracker deals will be responsible for the increase.

James Hyman, partner for residential sales, said: “Buy-to-let landlords have made up the majority of forced sellers up to now, but many home owners will be forced to bail out over the coming months, leading to more property for sale in the London market.

“This boost to supply will help increase transaction numbers, which have been stagnant for many months, and put buyers back in control.”
 
Further redundancies in the financial markets are expected over the summer, he said, while those who have lost their jobs over the last 12 months are also facing the reality of having to sell as the prospects of finding new employment remain limited.

He added that many who bought at the 2007 peak of the market and are now remortgaging will find that higher loan to value requirements make it difficult for them to switch to another affordable deal.