Buyer enthusiasm increases - Mortgages - News - Moneyfacts

News

Buyer enthusiasm increases

Buyer enthusiasm increases

Category: Mortgages

Updated: 12/03/2009
First Published: 10/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has been told to help first time buyers secure mortgages in a bid to kick start the struggling property market.

The call has been made by the Royal Institution of Chartered Surveyors (RICS), whose survey has shown that buyer enthusiasm is actually at its highest level for some time.

Interest levels rose for the fourth month in a row in February, with 20 per cent more chartered surveyors reporting a rise rather than a fall in new buyer enquiries. London showed the greatest rise as interest reached levels not seen since October 2006.

Rising enthusiasm has not translated to house sales, however, as the number of transactions per agency fell to an average of 9.5 - the lowest figure since the survey started in 1978. Flats are proving especially difficult to sell as first time buyers are unable to step onto the first rung of the property ladder

Difficulty in obtaining mortgage finance, even for those with large deposits, has also been cited as a key factor for the worrying figures.

"The Government must provide guarantees for the new issuance of residential mortgage backed securities to help first time buyers in particular and give the market much needed impetus," said RICS spokesperson, Jeremy Leaf.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close