30 July 2009
A recent report has shown that there is mixed news about the property market in the UK, with good news about increased mortgage lending being hampered by bad news about negative equity levels.
Reports have claimed that June saw mortgage lending rise to a thirteen month high, as lenders became slightly more relaxed and government initiatives started to take effect with regards to mortgage lending levels.
However, at the same time an analysis of the prime housing market was also carried out, and suggested that with property prices having plummeted over the past couple of years around 15 percent of homeowners could be in negative equity, where the value of their home is less than the amount that they still owe on their property.
According to Fitch Ratings the areas that were worst affected by negative equity in the UK included Derby, Nottingham, and Northampton.
There were also warning that homeowners that have fallen into negative equity could remain in that position for quite some time. There were also concern raised about the level of mortgage finance that was available to first time buyers, and the high deposits being demanded from first time buyers. Although there is more buyer interest in property the lack of mortgage finance for this group is creating some serious problems according to industry experts.
Tags: prop, house prices, property marketOne official from the Royal Institute of Chartered Surveyors stated: “Property transactions could rise a little further over the coming months. However, the continuing lack of mortgage finance for first-time buyers allied to a diminishing stock of instructions on estate agents books remain very real issues for the housing market to deal with.”