Ups and downs for the property market

Over the past couple of weeks the property market has seen both ups and downs, with industry officials stating that whilst there is improvement in some areas of the property market there are also many problems that are still affecting the property market quite severely.

The report comes following an analysis of the property market by the ratings agency Fitch Ratings, which had mixed news on the state of the property market.

In June mortgage lending in the UK is said to have reached its highest levels in thirteen months according to the report, which was obviously good news for the property market and for consumers. Officials have claimed that lenders are becoming slightly more relaxed with their lending criteria as a result of government measures and initiatives that have been implemented over the past year.

However, at the same time whilst the news about mortgage lending was positive there was also evidence to show that an increasing number of homeowners were now in negative equity, with around 15 percent of all homeowners now thought to be in a situation where the value of their property is actually worth less than the amount that they owe on it, thus leaving them with negative equity.

Another matter of concern was the lack of mortgage availability for first time buyers, with many still unable to get affordable mortgages partly due to the high level of deposit that lenders are still demanding.

One official from the Royal Institute of Chartered Surveyors stated: “Property transactions could rise a little further over the coming months. However, the continuing lack of mortgage finance for first-time buyers allied to a diminishing stock of instructions on estate agents books remain very real issues for the housing market to deal with.”

 

Tags: property prices, fitch ratings, industry officials, Business Finance, royal, housing market