LONDON, February 24 /PRNewswire/ --     Predictions that half a million UK homeowners will fall into serious
mortgage arrears this year is likely to lead to tens of thousands of homes
being repossessed. While this is grim news for those homeowners, bargain
hunters could help bring life back into the property market, says
Primelocation.com.

With banks and building societies in the UK still reluctant to lend
money, the prospects are for a bumper year for property auctions. Buyers with
access to cash can make purchases up to 40% below prices advertised in estate
agents' windows.

The Council for Mortgage Lenders has predicted that the number of
mortgage borrowers falling into serious arrears of three months or more will
exceed 500,000 by the end of the year. This is a substantial increase on the
arrears level at the end of last year of about 200,000.

CML expects repossessions to jump from 45,000 last year to 75,000 this
year. Some commentators believe the figure will rise much higher, as more
homeowners choose to walk away from their debts.

But with the housing market still moving slowly, banks and building
societies are likely to have a long wait to recover any value from
repossessed homes if they try to sell properties via estate agents. Instead,
they are putting more homes onto the markets via property auctions.

Those attending auctions hope to buy homes cheaply. Property auctions
offer a more efficient way of quickly disposing of a property and determining
current market value. Whichever interpretation is made, it looks as if
property auctions are set to be even more popular in 2010.

Andrew Smith of Primelocation.com says that in recent months the property
website has experienced a sustained increase in visitors looking for property
for sale at auction. "We have never before seen so much interest in property
auctions," says Andrew. "It looks like 2010 will be the year of the property
auction. And it is easy to see why. Buyers with cash can get a bargain and a
quick purchase. Sellers can get their hands on money much quicker. It's a
win, win situation.

"This is a trend that has become well-established in the UK. Our
prediction is that property auctions will also become much more firmly
established in international markets this year."

"Our comprehensive property website has a section on property auctions,
which puts would-be buyers and sellers in touch with property auctioneers. It
is a service that works well for everyone." To search for UK properties for
sale at auction, buyers can go to
http://www.primelocation.com/property-auctions.

Notes for editor:

The prediction that 500,000 homeowners will this year fall into serious
mortgage arrears of three months or more is contained in the latest issue of
the Council for Mortgage Lenders' 'News & Views', published 10 February.

Primelocation.com is a comprehensive property website. It contains
information on UK and international properties for sale, estate agents, news
and views about the housing market as well as information on property
auctions.

Contact Details
    Christopher Evans
    Primelocation.com Online Marketing Manager
    christopher.evans@primelocation.com
    +44(0)207-534-2609