Rics mortgage survey 'offers one side of the argument'

Date:Wednesday 11th August 2010
Author: Susanna Kavka

An industry source has suggested that a recent Rics mortgage survey offers just one side of the outlook in the sector.

Head of consulting at Ducalian Timothy Lambert pointed out that there are a lot of contradicting views regarding the state of the housing market at present.

"There are still first-time buyers entering the market - mainly because they are under the false impression that if they don't buy now, they will miss the bottom of the market," he said.

However, he stressed that the number of borrowers in this category are falling.

His comments follow the Rics mortgage survey that showed more surveyors reported a fall than a rise in house prices in July, which is the first time this has been the case since the same month in 2009.

In his opinion, an important contributing factor in the situation is the pressure bank are currently under to lend, particularly since a 20 per cent drop in the price of a house could affect the financial institution, as well as the consumer.