The housing ‘part-exchange’ market was booming in 2007 and the early part of 2008 before the effect of the recession took hold. This type of transaction hit 36,799 in 2007 and 32,959 in 2008.
However in 2009 there was a very significant 69% drop to 12,164 transactions as homebuyers retreated from the market place.
Currently we are seeing an improvement in this part of the market as home purchases involving part exchange increased by 13% during 2010 to 13,732. Although this is well below the peak, it indicates that the outlook is looking more positive.
Part exchange is once again the most popular incentive for home movers looking at new build homes because the transaction is much easier with no estate agency fees and no chains involved.
House building figures are continuing to pick up with private new home development increasing by 21% between Q3 2009 and Q3 2010.