No recovery for housing market
Recent positive reports from a number of studies should not be taken as a sign the housing market is set to recover from the decline that has affected it over the past two years, it has been claimed.
Hometrack, the Land Registry and Nationwide have all released figures which indicate the industry may beginning to improve its fortunes, however an expert from the latter said people should not get carried away.
Nationwide chief economist Martin Gahbauer told the Chartered Institute of Housing Conference and Exhibition yesterday (June 16th) that it could be a while before things pick up.
"For a real recovery to take place you need a greater amount of first-time buyers coming into the market because that is really what will provide the necessary injection of equity to get things moving across the entire housing chain," he said.
Mr Gahbauer explained a lack of lending was likely to curtail sales, with first-time buyers still being frozen out by the necessity for high deposits.
Some homeowners may decide to improve their property while the market is struggling, with conservatories, loft conversions and folding sliding doors all possible upgrades.