Right now, the state of the housing market has left many to offer mortgage advice that a wait and see mentality is best. Recovery has been slow and although comparisons have been made to problems in the past, more recent mortgage advice indicates that we are now dealing with an entirely different problem that could take many years to correct. For those that need a house now, this mortgage advice is particularly bitter and hard to swallow.
Simon Rubinsohn, the Royal Institute of Chartered Surveyors’ chief economist, said: “The data provide further evidence of the continuing pressure on the housing market. Loans for house purchases remain subdued, with first-time buyers under particular pressure. Any early relief for homebuyers in the form of a cut in interest rates is unlikely following the bigger than expected jump in inflation.”
A Department of Communities and Local Government spokesman said: “It is important to remember that UK house prices are significantly higher than five years ago. The current issue affecting the market is largely about the supply of credit – a very different situation to the early 1990s which was about high interest rates and unemployment.”
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