When will the mortgage market pick up?

24 November 2008

Industry experts are attempting to answer the question “When will the mortgage market recover?”.

A recent article in The Times compared the views of five experts from the housing market, asking them to comment on mortgage availability and the housing market in general.

After a year-on-year drop of almost 15% – according to the Nationwide House Price Index – it seems Jonathan Davis (housepricecrash.co.uk) anticipates a further 35% fall, while Yolande Barnes (Savills), Nicholas Leeming (propertyfinder.com) and Nick Bate (UK economist, Merrill Lynch) all agree we face a further 10% fall, while Martin Ellis (chief economist, Halifax) expects house prices to fall by just 8%.

As for timing: Nicholas Leeming, for example, expects the market to start to level out at the end of 2009: “It will take a while for the effects of the Government bail-out to filter through – the capital markets will not be freed up until maybe the third quarter of 2009, when we can expect to see more mortgage transactions and a gradual recovery of the market.”

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Tags: mortgage, mortgage market, mortgages, housing market, housing

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