A lack of mortgage finance continued to restrict the housing market in September, according to a new report from the Royal Institution of Chartered Surveyors (Rics).
The average number of transactions per surveyor dropped to less than one a week, caused by the inability of many people to secure a homeowner loan in the current economic conditions, the body stated.
However, it is hoped that extra capital being released to banks by the government will lead to increased lending to homebuyers.
Rics spokesperson Jeremy Leaf said that recent turmoil in the financial sector had “dented confidence” and that the spotlight is now on lenders to increase the flow of mortgage finance.
“The housing market continues to hold its breath and unless mortgage liquidity improves, the market is likely to remain a dormant beast for some time to come.”
Those who are finding it difficult to be granted a mortgage or loan – a group that ClearDebt has termed ‘funts’ or financially untouchable – may benefit from increased liquidity in the banking sector.
By Jamie Price