Positive news about the property market 'will encourage reluctant buyers'

Posted: 26 Aug 2009 09:56:25 GMT

As more positive news emerges about the property market, there could be an increase in the number of people going ahead with their plans to buy a house and taking the plunge, it has been suggested.

Catherine Hearnden, director of MyMortgageDirect, stated: "The more property stuff that is reported and comes out, the more people will take heart from that and take their plans off hold."

She added that for some potential home buyers, they may decide to "get on the ladder while [they] can" as they feel the market has bottomed out and it is past the worst.

This comment comes after figures from the British Bankers' Association earlier in August revealed that new mortgage lending and approvals had both increased.

However, Ms Hearnden went on to say that to help the market in the long-term, lenders would have to start to reduce the size of the deposits they require from people buying a property and adjust their loan-to-value rates.

Gross mortgage lending was up 26 per cent between June and July, according to the Council of Mortgage Lenders.


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