Research conducted by LSL Property Services revealed that purchasing involving part-exchange properties rose by 13% in 2010 to 13,732, the first increase since 2007.
The part-exchange market boomed during 2007 and early 2008, with transactions hitting 36,799 and 32,959 respectively. However in 2009 transactions dropped by 69% year on year to 12,164.
So what is attracting customers to part-exchange? Customers who participate in part-exchange schemes don’t have to worry about selling their properties and have reduced costs normally associated with buying and selling a property. However these type of schemes are dependent on new properties being built - private new home development has steadily increased in the last year, with 21% more new homes built in England in Q3 2010 compared with 2009.
Ian Long, managing director of St Trinity Asset Management, says levels are well below the peak but are looking more positive.
In the first three quarters of 2010, 65,800 new homes were built in the private sector - 5,090 more than in the whole of 2009.
At the end of 2010, developers had approximately 1,060 unsold second-hand homes in their inventories - a 12% jump from approximately 930 a year ago.
At the peak of the part exchange market, developers had an estimated 2,830 new build part exchange homes on their books at the end of the financial year 2007.
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