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Outlook improves for housing market

Outlook improves for housing market

Category: Mortgages

Updated: 12/05/2009
First Published: 12/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
There are signs that the housing market may be on the road to recovery after both sales and buyer enquiries climbed higher in April.

According to the latest research from RICS, interest from prospective home buyers increased last month at the fastest rate in almost a decade.

Encouragingly, sales edged up a little higher too, albeit from historically low levels, while optimism amongst surveyors that the upward trend will continue was universal for the first time since August 2006.

However, concern remains that the considerable deposits still needed by first time buyers to get a mortgage means many who have enquired about buying will be unable to do so.

"It seems that people want to buy but they are either unwilling or unable to," said Ben Thompson, mortgages director at Legal & General. "There is evidence that first-time buyers are increasingly interested in getting on the ladder, but this will not translate into actual sales whilst they believe that prices have further to fall.

"This all adds up to a lot of pent-up demand, which could release quite quickly if the economic conditions become more favourable."

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