Rics: Credit crunch continues to bite
Thu 17th Jan, 08:01:03 GMT
The credit crunch is continuing to hamper the ability of buyers to get onto the property ladder, new research has revealed.
According to the Royal Institution of Chartered Surveyors (Rics), 25 per cent more of its members said that the number of new buyer enquiries they received fell in December than reported an increase.
The organisation suggested that as lenders have becoming increasingly picky about who they will lend to, some would-be-homeowners have found themselves struggling to arrange a mortgage.
Ian Perry, a spokesman for Rics, said: "The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007."
He added that this does not mean that the UK is experiencing anything like the problems seen in the early 1990s, explaining: "Supply would have to loosen considerably before prices experience a significant dip."
Rics members also noted price falls in December, with 49.1 per cent more reporting a fall than a rise.
Mr Perry commented that the Bank of England may have to reduce interest rates "if the market is to remain in a stable condition".
Last month the Bank held rates at 5.5 per cent after reducing them by 0.25 per cent in November.
According to the Royal Institution of Chartered Surveyors (Rics), 25 per cent more of its members said that the number of new buyer enquiries they received fell in December than reported an increase.
The organisation suggested that as lenders have becoming increasingly picky about who they will lend to, some would-be-homeowners have found themselves struggling to arrange a mortgage.
Ian Perry, a spokesman for Rics, said: "The housing market is clearly feeling the pinch from the credit crunch and the round of interest rate hikes in 2007."
He added that this does not mean that the UK is experiencing anything like the problems seen in the early 1990s, explaining: "Supply would have to loosen considerably before prices experience a significant dip."
Rics members also noted price falls in December, with 49.1 per cent more reporting a fall than a rise.
Mr Perry commented that the Bank of England may have to reduce interest rates "if the market is to remain in a stable condition".
Last month the Bank held rates at 5.5 per cent after reducing them by 0.25 per cent in November.
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