Mouseprice highlights impact of mortgage availability

Date:Thursday 2nd December 2010
Author: Susanna Kavka

The housing market is being affected by a variety of factors, according to a source from Mouseprice, who suggested availability of mortgages is one of the most prominent.

Selwyn Lim, director of the online property market resource, described how the issue plays a "significant role" in the levels of transactions taking place in the UK.

He pointed out there are a relatively low number of buyers who are in a position to compete against others for houses and this leads to fewer sales and weak prices.

As well as the effect of mortgage availability, Mr Lim suggested the interest rates on home finance deals mean there are fewer homeowners who are forced to sell for financial reasons.

He said: "The lack of new properties coming on shows that there are not huge numbers of desperate sellers at the moment because interest rates are low."

A recent study by Hometrack showed that demand for housing fell by 4.3 per cent in November.