“Modest improvement” forecast for housing market

There will be a “modest improvement” in the housing market in the second half of this year, it has been predicted.

Content editor at FindaProperty.com Michael O’Flynn stated that reports that have emerged recently about a rise in buyer enquiries are “encouraging”.

“Many market forecasters, such as Capital Economics, have predicted that the worst will be over by summer. There is a case therefore, for cautious optimism,” he said.

He noted that prices are falling and claimed there are signs that banks and building societies are easing their restrictions on loan-to-value ratios, something that could offer debt help to borrowers as they may not need to save as large a deposit.

Property values have dropped by 16.6 per cent over the past year, according to Nationwide.

Prices fell by 1.3 per cent in January 2009 to £150,501, the firm stated, which could improve affordability for first-time buyers and people looking to move up the housing ladder.

By Jamie Price

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