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Residential mortgages 'will become more affordable'
The end of the recession will make it easier for people to secure the finance needed to purchase residential property.
This is according to head of consulting at Ducalian Timothy Lambert, who observed that pay freezes and cuts mean that, at the moment, many people are finding it difficult to obtain a residential mortgage.
He explained that once interest rates start to increase there will be a jump in the number of repossessions taking place as homeowners struggle to pay their mortgages, but then the market will bounce back, with demand being driven by the rising population.
"Many people are finding property unaffordable," Mr Lambert said, noting that this explains why a number of investors are looking to increase their activity in the market.
"However, the economy will recover and as such people will buy again," he added.
He was commenting after figures released by Rightmove earlier in the month showed that, in the first week of the year, the average asking price for residential properties increased by 1.2 per cent, taking it to £222,261.
This is according to head of consulting at Ducalian Timothy Lambert, who observed that pay freezes and cuts mean that, at the moment, many people are finding it difficult to obtain a residential mortgage.
He explained that once interest rates start to increase there will be a jump in the number of repossessions taking place as homeowners struggle to pay their mortgages, but then the market will bounce back, with demand being driven by the rising population.
"Many people are finding property unaffordable," Mr Lambert said, noting that this explains why a number of investors are looking to increase their activity in the market.
"However, the economy will recover and as such people will buy again," he added.
He was commenting after figures released by Rightmove earlier in the month showed that, in the first week of the year, the average asking price for residential properties increased by 1.2 per cent, taking it to £222,261.
Mon, 25th Jan 2010