The property market is still suffering. News today that house prices are still falling and property sales are slow. Although there was a slight increase in mortgage lending earlier this year, overall the markets are still in decline.
There are currently fewer houses going on the market, according to the Royal Institute of Chartered Surveyors. The RICS’ Simon Rubinsohn described the current condition as being stuck in the doldrums.
Summer is usually the time when the housing market picks up, but fewer people are deciding the move. The cost of moving continues to rise and it is harder for many families to improve the size or quality of their homes without either borrowing significantly more money or getting a good pay rise – neither is an option for most people at the moment.
Some analysts are still confident that the housing market will see a revival later in the summer. However, while mortgage lenders remains very cagey with their cash, many people just do not have the option to move up the housing ladder.
There have been fewer new housing developments in recent years due to stagnation in the economy which means that there are fewer new properties for first time buyers entering the market.