4
Apr
Market 'will be determined by mortgage troubles'
The future of the UK housing market will be determined by how the
situation develops in the mortgage sector, it has been
claimed.
Head of residential research at Knight Frank Liam Bailey added that
the prime mortgage market is also not "immune" from problems linked
to the credit crunch.
However, if matters "return to normal" in the months ahead, then
there will probably be zero growth seen in this sector by the end
of 2008, he claimed.
Moreover, London is performing well at present, he noted, even if
there may be troubled times on the horizon.
"Although there are difficulties in the city, lots of banks are
needing staff here. It's just that we have a difficult 12 months
ahead of us", he commented.
A large number of mortgage products have been removed from the
market in recent times, a recent study from Moneyfacts found.
Within a single month, 2,026 services were taken off the agenda, it
said.