Latest Survey Reveals Pessimistic View of UK Housing Market Future
According to a survey just conducted by the biggest group of independent mortgage brokers, more than 95% of brokers feel the housing market will not improve over the course of the next twelve months.
The final results by the Professional Insurance Brokers Association survey were quite revealing. The consensus of the survey believes the market will either remain flat or decline into 2012. More than half of the respondents believe the most recent bank bailout would not affect lending practices within the UK. They are well equipped with information to see the bank bailout results. During the demise of the economy in 2007 to 2008, several companies were bailed out only to still fall a short time later. Only a fourth think it would make a positive impact. More than 10% are convinced a negative effect would be the result. Rachel Doyle, director of PIBA Mortgage Services, commented on the problem plaguing the property market, saying: "The real problem is the lack of lending and that is directly impacting on the property market. Had the banking crisis not been so severe the property market would most likely have bottomed out by now. There is strong evidence of an underlying demand but applications are being declined on a large scale." She added: "There is a fairly wide consensus at this stage that more needs to be done to help mortgage holders in distress." Over 60% of brokers think guidelines to protect mortgage holders who are in arrears or possibly going into arrears are not suitable to get those back on their feet.