Lending Will Keep Prices Stable

16th November 2009

Any thoughts that the recent recovery in the housing market will start to push up house prices have been halted by the low statistics of first time buyers entering the market according to Scott Mellors, FRICS, Senior Partner of John German.

“With only about one third the number of first time buyers that purchased a home ten years ago, it is inevitable that the bottom end of the market will remain anchored until more encouraging mortgage deals are on offer.”

“We are seeing a few investment purchases but nowhere near the numbers pre 2007 – the lower priced properties are having a really tough time with the limited number of buyers” continued Scott.

“Further up the market, where choice is more limited, we are noticing that buyers are taking the opportunity of longer fixed rate deals at quite low interest rates – there is a little less sensitivity to price than there was 12 months ago, which is encouraging.”

Scott concluded by saying: “We all wish to see more help for the first time buyer next year. Stamp Duty relaxation finishes after Christmas and with banks and building societies being cautious on high LTVs it is probably left to the Government to come up with some measures to encourage those thinking of buying their first home.”

Return to main news page