Mortgage and housing fundamentals ‘broadly positive’

With such variety in predictions about which direction the markets will take, IMLA have said that there is a “broadly positive” outlook for house prices and the mortgage market.

It explains that this trend is unclear due to the disparity between demand for houses and the supply available, as well as the “inadequate” amount of new builds happening over the past years.

Executive director of IMLA, Peter Williams, commented: “Without doubt, there are some clouds on the near horizon but IMLA’s view is that, if the market correction gathers pace in the way some pundits suggest, then we should expect firm action by the Bank of England to support the financial markets, provide liquidity and, if necessary, cut rates to protect confidence and help the markets recover over the medium term.”

He added that, inflation in house prices varies from place to place across the country, saying that, realistically, it will only be those who have bought a property at the market peak who will be effected by the market slowdown.

Tags: mortgage, pundits, bank of england, market, amount, cut rates, market peak, property