House price rises set to hit double figures
Comments |
by Phil Pitt
House price inflation could reach
double digits in the next 12 months, according to the chief
executive of Kent Reliance.
It comes on the day the Council of
Mortgage Lenders revealed the number of new mortgages granted
across the UK leapt 23 per cent in June.
But Kent Reliance boss Mike Lazenby
says, at the moment, the UK housing market is still in a mess.
"That 23 per cent increase comes
from a very low base. Those who are lending money are doing so to
very strict criteria, and that is preventing many first-time
buyers, who are crucial to getting the market moving again, from
getting loans," said Mr Lazenby.
He believes most building societies
have their hands tied in the amount of money they can lend.
"Regulations at the moment require building societies to hold
artificial levels of liquidity, and until that is relaxed there
will not be a significant change in the number of approvals."
Mr Lazenby believes much of the
increased interest in property in the London area is fuelled by
speculative buyers, mainly from abroad, who are not tied into the
UK’s finance industry.
But he says as confidence returns
to the market as the economy picks up - perhaps next year - prices
will begin to rise again, and the South East will be bouyed with a
knock-on effect of the looming 2012 London Olympics.
Tuesday, August 11 2009
The KM Group does not moderate comments.
Please click here for our house rules.