Market remains tough for buyers, despite price decreases
26 August 2009
Property buyers will continue to face difficulties in securing a mortgage, despite recent falls in house prices.
That is according to the Council of Mortgage Lenders (CML), which was commenting in response to recent figures from the Rightmove House Price Index (RHPI) which indicated that the average asking price for a UK home had fallen by 2.2 per cent.
Bernard Clarke, a spokesperson for the CML, said that decreased house prices were of little worth if surrounding economic factors were not conducive to investment.
He said: "The simple truth is that lower prices will encourage buyers but they will be constrained by … the difficulties in obtaining a mortgage [and] coming up with some of the sizeable deposits that first time buyers are paying."
"[There will also be] concerns about the economy, job security and future house prices."
According to the RHPI, 75 per cent of homeowners do not expect prices to fall in the next year.
By William Harrison
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