5 Aug

Distressed houses for sale in UK 'to increase'

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.ADNFCR-1222-ID-800014642-ADNFCR

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