Finance is “still quite hard to come by” despite the current low level of interest rates, it has been noted.
David Amstell, founder of property website Briffy.com, said that the housing sector remains slow due to a lack of mortgage supply, particularly for first-time buyers.
“Even though interest rates are at a fantastically low level, it is not reflected in the high street,” he stated.
Mr Amstell went on to remark that loan-to-value figures – meaning the amount that borrowers need to put down as a deposit on a home – are still “very poor” in the wake of the credit crunch.
In the past, customers could access 95 per cent mortgages, but now the average level is around 70 per cent, he claimed.
Meanwhile, Halifax has reported that house prices declined 1.7 per cent in April, something that could lead to debt management issues for owners facing the prospect of negative equity.
By Jamie Price