Savills: Mortgage lending won't improve until after credit crisis

30-Jul-2008

First-time buyers may not be able to avail of a healthy housing market until the credit crisis "has worked itself out", according to real estate specialist Savills.

Chatting about current difficulties with mortgage lending, Lucian Cook - the director of Savills Residential Research - suggested prices will continue to drop by ten per cent until the end of this year, with further falls anticipated next year.

"The market won't recover until the credit crisis has worked itself out and we are back to being able to get hold of lending on more reasonable terms," he remarked.

Mr Cook's prediction follows information from July's Rightmove House Price Index indicating that new sellers entering the market have priced their properties at an average of over £4,000 less than the month before.

New sellers are reportedly asking prices of two per cent less than a year ago, marking the first time Rightmove has measured a year-on-year fall.

Market analysts at comparison website moneysupermarket.com have previously claimed first-time buyers are experiencing "fragile confidence" as a result of current mortgage lender activity.

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Estate-agent poll reveals house price expectationsMortgage lenders responsible for 'fragile' first-time buyer confidence

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