AMI predicts tough year for property market
House prices will continue to fall and securing a mortgage will remain difficult this year, it has been predicted.
According to the Association of Mortgage Intermediaries (AMI), reductions in the Bank of England's base rate are set to see banks increase margins rather than pass on savings to consumers in 2009.
The body has suggested that values will be lower by the end of the year, which could mean that those who choose to buy property in London are faced with negative equity.
Director at AMI Robert Sinclair noted that although support announced by the government may provide some help, problems will remain.
"With banks still vulnerable, it is very unclear how effective the new measures to boost lending will be and how quickly they will make their impact," he remarked.
Last week Firstrung observed that first-time buyers are likely to see little benefit from the government's latest step, as this group is being kept out of the housing market due to the need for a high deposit.
Published 26th January, 2009
© 2009 Estates IT Limited
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House prices will continue to fall and securing a mortgage will remain difficult this year, it has been predicted.