Following recent announcements from the RICS (Royal Institute of Chartered Surveyors), debt management company Gregory Pennington predicts that the collapse in the number of housing transactions could lead to greater demand for professional debt solutions, including debt management.
A lack of attractive mortgage products, together with high levels of caution among would-be buyers, is restricting demand. At the same time, we’ve yet to see high numbers of ‘distress sales’ caused either by repossession or by attempts to pre-empt it. With supply and demand both reduced, lower transaction levels are inevitable.
“Would-be buyers and sellers are concerned with their own transactions,” said a spokesperson for the debt management company, “but the RICS Housing Market Surveys from April and May 2008 provide a much-needed reminder that a reduction in the overall number of transactions can pose a real threat to the wider economy.”
“The RICS states that we’re facing the lowest average number of transactions per surveyor (over the last three months) since 1978. The implications go far beyond the field of chartered surveying. Movers, construction workers, interior designers, architects, solicitors, sellers of furniture and white goods – these are just some of the people whose jobs are directly affected by any decline in numbers of transactions.
“Any impact on employment would lead to lower consumer spending that would affect jobs on the high street and in the service sector in general – and in today’s economic environment, any reduction in income can seriously impair borrowers’ ability to manage their debt repayments and cope with the rising cost of living.
“At Gregory Pennington,” the debt management company spokesperson concludes, “we’re expecting more requests for debt advice and help, and higher levels of interest in our debt management plan. Debt management is a tried and tested way of reducing our clients’ monthly debt repayments to keep their expenditure in line with their income. It’s not the only debt solution available, but conditions in today’s housing and credit markets can make debt consolidation remortgages and loans less attractive options for some people, while a debt management plan doesn’t depend on the state of the housing market or access to further credit – it’s a question of negotiating monthly payments which a client can afford and which creditors can accept.”
About Gregory Pennington
Gregory Pennington is part of the Think Money Group, one of the UK’s leading financial solutions providers. Think Money is headquartered in Salford Quays, Manchester, and employs around 600 employees to deliver a comprehensive range of debt, loan and banking solutions. It defines its mission as ‘To educate, rehabilitate and advise on all aspects of financial management’.
For more information, contact Melanie.Taylor@gregorypennington.com (0845 056 6480)
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