Estate agents Spicerhaart Corporate Sales, which compiled the research using its own data, said this was due to the property being attractive to first time buyers and investors looking for chain free properties.
In April, the average time taken for a possessed property transaction to complete from the day of possession was 106 days, 23 days quicker than a year previously.
The time from possession to market was nine days in April, and from possession to exchange 100 days, compared to 122 in May 2009.
Mark Pilling, managing director at Spicerhaart Corporate Sales said: “The key driver for asset managers is to ensure they sell possessed properties in the quickest timeframe and for the best possible price, as this is in the best interests of both the lender and the borrower.”
Dominic Toller, managing director of Property Earth, agreed: “In a normal market repossessed properties should sell more quickly than other stock because they are chain free and the vendor is clearly keen for completion to take place asap. In recent months the market has be far from normal with very low stock levels in agent windows and as a consequence repossessed properties have been selling even more quickly than usual. PropertyEarth.net is a website dedicated to the sale of chain free properties, particularly repossessions, and our figures show that in 2010 a sale period (listing to exchange of contracts) of less than 60 days has become a frequent occurrence. There are signs, however, that the tide is turning and our prediction is that sale times will lengthen over the next quarter.”
Statistics from the Council of Mortgage Lenders for Q1 2010 showed the number of repossessions was 9,800, down from 10,600 in the previous quarter and 13,200 in the first quarter of 2009.
Pilling added: “While the number of possessions may be falling, there remain many factors that could lead to a reversal of these fortunes. Potential rises in interest rates, increasing unemployment and diminishing support for forbearance measures could mean that borrowers struggle to meet repayments in future, possibly resulting in increased possessions.
“It is essential that asset managers continually asses their practices and put the best measures in place to help lenders sell these possessed properties and reduce the pain for all parties concerned.”
