Are we seeing signs that the Property Market is Improving?

We all know that the property market is taking a major hit at the moment and house prices are at a all time low and many people are wondering how long this will last. Early predictions did state that 2009 will be a tough year for us all in particular the housing market. However is there signs that the property market may be showing signing that things are picking up for the property market?

According to Haart this seems to be true as the managing director said that affordability has greatly improved in the housing market. Although you would expect the company to making these claims as they would like to sell more houses. It is said that the interest in buying a home has increased. This is due to the fact that the interest rate is so low, the lowest in history. The reason the interest rate is so low is because the Bank of England want people to start buying homes, unfortunately though the banks are still reluctant to give people mortgages. If the banks would start to leant and this does also include to each other this will go a long way to improve things.

It would seem that The Royal Institution of Chartered Surveyors (Rics) would agree with Haart as they have recently recorded statistics to back up this claim. Rics also said that house prices were seeing signs that average house prices were returning to levels seen three years ago. First time buyers seem to be in the best position to take advantage of this increase.

For this to happen though buyer confidence needs to return to normal and to do this there needs to be ready available affordable mortgages, again we need to turn back to the bank to kick start this.

Rics has called on the government to do more to help solve this problem one of the things they suggest is for the government to offer residential mortgage backed securities.

However the rental market has increased a recent announcement by Grant management stated that occupancy level where high for rental Property, they supply flats to rent in Edinburgh and also Houses to rent in Liverpool.

I don’t think things will be solved this year, hopefully though by the end of this year we will see some big signs that the trend is turning to an upward one. I believe the banks will play a major part in this and until they start lending and the have confidence in doing so this problem won’t be solved.

Author

Jack Mack

Jack's Website: poker rules