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Housing market turning point imminent?

Housing market turning point imminent?

Category: Mortgages

Updated: 05/06/2009
First Published: 05/06/2009

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 It is now over 6 months old so the content may be out of date.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 founder of a property website says the first shoots of the housing market recovery are visible but are being put in jeopardy by a property shortage.

The claim comes just a day after the Halifax's House Price Index revealed that UK house prices recorded a rise of 2.6 per cent last month.

Aaron Turner of look4aproperty.com believes first time buyers are trying to get a footing on the property ladder but are being hampered by a lack of stock.

Indeed, figures from the Council of Mortgage Lenders shows that 40 per cent of those purchasing a home in March were first time buyers, although this figure is still historically low.

Mr Turner said enquiries on the firm's website increased by 150 per cent in April and May, while numbers have continued to rise in June.

"There has been a really steep increase in people wanting to buy a home," he commented. "But homeowners need to put properties back on the market or risk stifling the first real green shoots of recovery for this economy.

"The biggest problem we are now facing is a lack of homes. A lot of people went into the rental market after their homes failed to sell – but we are telling them that now is the time to switch back again."

The trend of saving rather than spending since the recession means that many consumers have sizable deposits that they wouldn't have otherwise, he added.

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