Some vulnerable sellers are reportedly being forced to offload their homes at almost any price.
Homeowners occupying flats they cannot sell due to cladding issues, amid new safety rules introduced in the wake of the Grenfell Tower fire, are reportedly being forced to accept enormous discounts.
A growing number of homeowners say they face bankruptcy if they cannot sell their properties, as many expect huge bills for repair work and increasing mortgage payments.
Vendors, some of which have turned to cash-buying firms, have been left with no choice but to accept reductions of up to 40% on their asking price, according to Money Mail.
Kate Henderson, chief executive of the National Housing Federation, said: “It’s shocking that people feel forced to accept such low offers for their homes.
“People will have put all of their life’s savings into buying these properties. Yet now, through no fault of their own, they’re losing all that. This is a desperately stressful situation for them.”
New rules mean homeowners require an EWS1 form to prove their building is free of dangerous cladding, but there are fewer than 300 engineers qualified to carry out the survey on 1.5 million or so affected flats.
Tommy Hughes, director of We Buy Property, told Money Mail that he has acquired half a dozen flats with cladding issues at up to 70% of [perceived] market value over the past three months.
He commented: “We hope to be able to make a 10% to 15% profit on these properties somewhere down the line.”