Tuesday 25 January 2011

propertytalk Live! - 2010 saw the bounceback of part exchange house purchases

propertytalk Live! - 2010 saw the bounceback of part exchange house purchases

2010 marked a turning point for part exchange schemes, with transactions involving part exchange properties rising for the first time in three years.

The number of new home purchases involving part exchange rose by 13% in 2010 to 13,732, the first increase since 2007.

According to the latest research by St Trinity Asset Management and LSL Land and New Homes, the part exchange market boomed during 2007 and early 2008, with transactions hitting 36,799 and 32,959 respectively. When house building was at its peak and competition was exceptional, new home builders relied upon part exchange incentives to increase their sales rate. Following the housing market downturn, transactions dropped, and by 2009 part exchange transactions had fallen by 69% year on year to 12,164.

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