Housing market 'will not recover without improved mortgage availability'

Posted: 17 Feb 2010 10:27:10 GMT

The UK housing market will not make a full recovery until there is improved mortgage availability that will allow people to finance house purchases, it has been suggested.

Steve Turner, head of communications at the Home Builders Federation, says that last year was "very difficult" for the property sector primarily because would-be home purchasers were not able to secure mortgage deals.

And he adds that until home loan availability increases, the housing market will continue to struggle.

"Until people can borrow money at competitive rates, you are not going to see a sustainable recovery because if people can't buy homes then developers aren't going to build them," comments Mr Turner.

According to the Glenigan Index, the value of new private housing starts in the UK decreased by 20 per cent during 2009.

Similarly, the Royal Institute of Chartered Surveyors reported that workloads among its members had declined for the seventh consecutive quarter.

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