Govt action needed to assist FTBs, says Rics

10-Mar-2009

Housing market activity could stagnate unless the government issues guarantees for residential mortgage-backed securities to assist first-time buyers (FTBs), according to the Royal Institution of Chartered Surveyors (Rics).

Jeremy Leaf, spokesperson for the property industry body, believes such an approach would give the housing market a "much-needed impetus".

His comments come after Gary Smith, vice president of the National Association of Estate Agents, said last week's interest rate cut from the Bank of England will make "no difference" to improving liquidity in the mortgage market.

Data published by Rics today showed 20 per cent more chartered surveyors reported a rise rather than a fall in new buyer enquiries last month, compared to 15 per cent in January.

In London, the figure was at 44 per cent - the highest level in two years.

However, the study also showed that during the last quarter, the average number of transactions per agency fell from 9.8 to 9.5, the lowest total since the survey began in 1978.

Mr Leaf said: "The lengthy process of obtaining mortgage finance, even for those with large deposits, is contributing towards the blockage in the market place."

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

NAEA criticises rate cutFTBs 'being victimised by other homeowners' mistakesLiving with parents 'simplest solution for FTBs'

2012: Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar