Buyer enthusiasm increases - Mortgages - News - Moneyfacts


Buyer enthusiasm increases

Buyer enthusiasm increases

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.