James Hyman, Partner for Residential Sales, said: "Buy to let landlords have made up the majority of forced sellers up to now, but many homeowners will be forced to bail out over the coming months, leading to more property for sale in the London market. This boost to supply will help increase transaction numbers which have been stagnant for many months and put buyers back in control."
Further redundancies are expected over the summer as the recession shows little sign of improvement and the financial services and banking sectors continue to take the brunt of job losses in London. Those who have lost their jobs over the last twelve months are also facing the reality of having to sell as the prospects of finding new employment remain limited.
Many homeowners who bought at the 2007 peak of the market and are now remortgaging will find that higher LTV requirements make it difficult for them to switch onto another affordable deal, leaving them no option but to move onto their lender's SVR. With interest rates expected to rise over coming months, these borrowers will find it more and more difficult to afford their property, resulting in a surge of new supply onto the market.
