Property market looks set to remain slow
Moorfields Corporate Recovery expect the housing market to remain slow, as the number of mortgages approved for house buyers by UK banks fell by 10% in 2010.
The British Bankers Association (BBA) says its members approved just 400,000 mortgages between them in 2010, taking them to their lowest level in 11 years.
HMRC have also said the number of homes sold in the UK during 2010 stood at just 885,000, 27,000 more than the previous year but only half of what was recorded in 2006 and 2007.
Phil Smith, Partner, Moorfields “Activity in the housing market has fallen dramatically, potential purchasers and builders remain wary of the uncertain economic climate so are waiting until the outlook is clearer. Those happy to go ahead with a purchase are left struggling to raise the mortgage they need.”
Simon Thomas, Partner, Moorfields “Government cuts, rising inflation and the threat of increased interest rates will mean many homeowners will remain in their current homes reducing the number of properties coming to the market. We hope prices can remain stable in 2011 as the market does not look set to improve until we are into 2012.”
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