NAEA calls for loosening of mortgage lending criteria

Date:Friday 3rd December 2010
Author: Susanna Kavka

Mortgage lending criteria should be relaxed, according to an expert at the National Association of Estate Agents (NAEA).

Peter Bolton King, chief executive of the industry body, explained that it is the "stubborn" attitudes of major lenders that are holding back the sector and suggested criteria for borrowing needs to be loosened.

"The housing market remains in a state of fragile recovery as the year ends," he said.

Mr Bolton King pointed out that many people have been able to take advantage of low interest rates recently, but he predicted that this situation could change for the worse over the coming year.

In his opinion, one trend that is likely to appear in 2011 is "postcode power", which refers to the recovery of the housing market in some areas but not in others.

Last month, the NAEA highlighted the launch of a new licence for professionals in the sector, with Mr Bolton King encouraging consumers to ask firms whether they hold one of the new permits.