Housing market 'is not blooming'

Posted: 16 Dec 2009 11:34:20 GMT

The claim that the housing market is blooming again is "completely unfounded", according to one mortgage expert.

Lee Grandin, managing director of Landlord Mortgages, says that although positive changes have been seen in the property market of late there is still room for significant improvement.

"The only thing that will get momentum going is when the mortgage lenders start to reduce the deposit requirements," he advises.

Mr Grandin believes that the need for homebuyers to have a large deposit is what is currently stalling the market.

He adds that lenders are predicting that in 2009 house prices will remain downcast.

According to Countrywide Mortgage Services, competition between home loan providers is pushing down the average interest rates on mortgage products, which has in turn led to a 43 per cent increase in home loan applications.

Mr Grandin concludes that while this information does indicate a positive change, there is still room for a vast improvement in the market.

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