More mortgage lending needed, expert says

Date:Tuesday 28th April 2009
Author: Max Freedman

If the UK's property market is to improve, more mortgage lending is needed.

This is according to Michael O'Flynn, content editor at FindaProperty.com, who pointed out that housing transaction levels are currently "very low".

He added: "Lending is the main issue and it remains to be seen whether recent Budget announcements, notably mortgage backed securitisation, manage to make more money available to lenders and introduce some liquidity back into the market."

The expert went on to say that without an increase in mortgage lending, Britain will not see a rise in transaction levels and house prices will remain "under pressure".

Earlier this month, the Association of Mortgage Intermediaries released a report which suggested that more support is required in order to stimulate the mortgage market.

It said that first-time buyers are among the worst affected by the credit crunch as they are struggling to secure the deposits necessary to get mortgages.