Cooling market means one in 10 home sellers would be happy to part exchange
The latest research by Quickmove Properties has shown that with the property market cooling, as many as one in 10 UK home sellers would be more inclined to a part exchange property transaction when buying their new home. It allows them to bypass the tougher open market conditions caused by dwindling buyer demand levels and a more volatile transaction timeline.
No chain, the ability to buy and sell in one fell swoop, a quicker transaction time and no estate agent fees - these are just some of the benefits that come with a part exchange property sale. Benefits that would be warmly welcomed by home sellers looking for peace of mind in regular market conditions, let alone at present with buyer demand dwindling and market volatility on the rise.
But despite the benefits of part exchanging, just 6% of UK homeowners surveyed by Quickmove Properties had ever considered it as an option when moving house.
However, as many as one in 10 said they would now be open to the idea in current market conditions, with the ability to avoid the dreaded chain being the most appealing factor, as well as the ability to buy and sell in one move and the speed, certainty and security that a part exchange brings.
Part exchanging is commonplace in many other areas of life such as buying a car and despite a lack of awareness amongst UK homeowners, it’s not completely alien within the property market.
In fact, part exchange schemes allowing sellers to trade the value of their current home against a new home are already established within the new-build sector, with the property developer taking the place of the estate agent and buyer. That said, they do only account for an estimated 2%* of all new-build transactions, which equates to less than 700 sales a year.
Part exchanging is more commonplace within the downsizing sector as a way to release valuable equity and move within weeks. Insight from property part exchange specialists Quickmove Properties shows that half (51%) of their park home buyer customers opted to part exchange their bricks and mortar home when purchasing their park home.
The biggest appeal of doing so meant they could avoid dealing with estate agents and solicitors, while the convenience and speed also ranked high.
One big benefit of part exchanging that also resonated with home sellers was the ability to secure a licence to occupy, allowing them to keep the keys to their existing house for up to two weeks after the sale had completed, giving them plenty of time to move into their new park home.
Sales Director at Quickmove Properties, Mark O’Dwyer, commented: “A part exchange property transaction can eradicate some of the biggest issues associated with buying and selling property, particularly at present as the market has started to cool.
Anyone with a property to sell risks losing out on their onward purchase while they find a buyer, and with house prices falling they also risk losing valuable equity for every month that they remain un-proceedable!
That’s why PX is increasingly popular amongst those at the end of the homeowning cycle who are looking to downsize from bricks and mortar to a park home. They can move within a few weeks without the hassle of endless viewings and chains falling through.
We’re celebrating our 25th anniversary at Quickmove Properties this year and as one of the leading property part exchange providers, we’ve completed 6,050 part exchanges worth in excess of £1.18bn during our time.
In our survey 8 out of 10 park home buyers using Quickmove Part Exchange said they would recommend it to others, so in the current market a part exchange could be just the ticket to bypass cooling market conditions and secure a quick and certain move.”
*Based on part exchange transactions as a percentage of all transactions taken from Bellway (3%) and Barratt (1.1%) (Average 2%) and applied to 2022 annual new-build sales volume for England and Wales (32,740), estimating that 671 part exchange transactions take place in the new-build sector in a year.