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FRIDAY 15TH JULY 2005
 MORE SELLERS WILLING TO NEGOTIATE

House sellers are increasingly willing to consider low offers from well-placed buyers, according to figures published by Yorkshire Bank.

The bank's latest Housebuyers Survey found one in five sellers would now favour lower offers from buyers in shorter chains rather than risk holding out for a higher bidder - a near doubling of the 12% figure recorded three months ago.

Chain-free first-time buyers are also ready to take advantage of their stronger hand in the housing market. Four out of 10 say they would be willing to make offers significantly under the asking price, which is a notable increase on the 27% who would have done so three months ago.

Head of retail at Yorkshire Bank, Gary Lumby, said, "First-time buyers are of course well-placed to take full advantage of this, along with the increasingly attractive mortgage deals that many lenders are prepared to offer them."

Also working to first-time buyers' advantage is the government's recently-announced plans for expanding shared ownership of houses in England, where buyers can co-fund a property together with help from mortgage lenders and the government. Nearly two in five first-time buyers say they are keen to take advantage of this Not everybody sees the benefits, though. Almost one in five surveyed feared higher taxes to help fund the scheme.

Gary Lumby said, "First-time buyers often do not have the kind of budget that existing home owners can put behind a new purchase. However, they offer the promise of a speedy sale, and that is what sellers are increasingly looking for."

One dampening factor could be the reassessment of council tax bands due to be completed by 2007, following the government's decision that there should be a revaluation based on 1 April 2005 property values. One in five of those thinking of moving house may shelve these plans until the government completes this reassessment, the survey indicated.

"Speculation about extra council tax premiums on home improvements, such as extensions, loft conversions and garden sheds will further add to the worries of homeowners who have decided to stay put and invest in their property rather than move house," added Mr Lumby.

* One in three people (32%) think house prices will remain static over the next year - up from 27% three months ago.

* Recent first-time buyers are confident about house prices, with 64% thinking their new home will rise in value over the next 12 months.

* Almost one in five (17%) think the market will pick up because raising the stamp duty threshold to £120,000 will mean many buyers will have more money to spend.

* Less than one in two (47%) think interest rates will rise, the lowest number for two years.


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