Developers cannot sell their properties |
29 2008 |
| Property developers are finding it increasingly difficult to sell their properties because more people are choosing to rent rather than buy. The National Housing Federation (NHF) said that many developers started building properties during the house price boom. In a bid to make as much money as possible, they squeezed as many flats as they could onto one site. However, now that the market is suffering, few people are willing to buy these small flats and are choosing to rent properties instead. "We have seen a lot of very small flats being built during the housing boom, and some developers have attempted to cash in by squeezing in as many properties as they could onto sites," said an NHF spokesperson. "They are now finding these homes quite hard to shift." The global credit crunch has led to a reduction in the number of available mortgages on the market, leading to more people renting rather than buying.  |
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