Sales of repos double in first quarter

Sales of repossessed properties in the first quarter of this year were double those of the corresponding period in 2008.

The Asset Management Group (AMG), which handles sales of repossessions for a number of lenders, said there has also been a month-on-month increase in properties going under offer.

Simon Matthews, managing director of AMG, said: “We reported earlier in the year that activity in the housing market was on the up. At the time it was not entirely clear whether the increased activity was merely a blip, but it now seems that this was not the case, with sustained growth throughout the quarter.

“Predictions of repossession levels this year continue to be high, but with housing stock actually being sold, it suggests a positive underlying confidence and a movement of the market in the right direction.”

He said that lower-priced repossessions were being snapped up by property investors, but added: “Whatever the reason for the increase in sales, it must surely be seen as positive for the numerous parties within the housing market, whether lenders, brokers or estate agents, whose business models rely on transactions, transactions, transactions.”