Fifth of home sellers 'downsize'

More than a fifth of homes being put up for sale are on the market because their owners cannot keep up with their mortgage payments, according to a survey.

The National Association of Estate Agents (Naea) says at least 5,000 properties a week are being put up for sale by people they describe as "forced downsizers" - meaning people forced to sell for financial reasons.

The Naea survey, carried out for Friday's Times, shows more than half the agents they spoke to said at least 20% of their sellers were having difficulties paying their mortgages.

One in five agents said such sales made up 50% of all properties displayed in their windows.

Naea chief executive Peter Bolton King said: "It is those homeowners who were on cheap fixed-rate mortgage deals who cannot replace them and are struggling with the rise in repayments."

More than 27,000 properties have come on to the market in the past week, according to the property search engine Globrix and the Naea survey suggests at least 5,000 of these may be "forced" sales.

The claims are supported by quarterly figures published on Friday by the Council of Mortgage Lenders showing repossessions have risen by 70% this year.

The figures show repossessions are expected to have risen from 18,900 in June to at least 45,000 by the end of December.

The number of househunters has fallen from 211 to 196 a month per agent, according to the Naea but it added the the number of first-time buyers is increasing.

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