Rics: Lack of mortgage lending restricting home-buying

Date:Thursday 16th April 2009
Author: Susanna Kavka

The current lack of mortgage lending in the UK is holding back home-buying activity, an industry body has posited.

According to the Royal Institution of Chartered Surveyors (Rics), many people are being prevented from purchasing properties as a result of the economic conditions affecting the country.

It made its comments in the wake of research it conducted which found that new buyer enquiries were up last month.

Rics found that 31 per cent more chartered surveyors reported a rise than a fall in such enquiries during the month, compared with 21 per cent in February.

However, a lack of available credit is still holding back sales, it claimed.

The organisation's Ian Perry said: "Accessibility for first-time buyers is likely to remain difficult while loan-to-value ratios generally remain at current levels."

With operations in 146 countries around the world, Rics aims to help set, maintain and regulate standards in the chartered surveying industry.