Rics discusses downward trend for mortgages

Date:Monday 13th December 2010
Author: Max Freedman

The number of people applying for mortgages is likely to drop, according to a source from Rics.

Economist at the chartered surveyor institution Himanshu Wani noted that first-time buyers are struggling to come up with the larger deposits being requested by lenders.

In his opinion, this has led to higher rental prices, as the strength of demand for such residences grows.

"The downward trend in owner-occupier rates that started in the middle of the last decade looks set to continue," said Mr Wani.

He predicted that more consumers will decide to rent property in the near future so they can build up their finances.

His comments were made after new research by Rics showed that the percentage of owner-occupiers has dropped significantly in recent years and currently stands at 68 per cent.

This month, the organisation's chief economist Simon Rubinsohn claimed there is a shortage of funding in the construction sector, as evidenced in a recent CIPS survey.