Peter Rollings responding to the latest housing market report from RICS
Sun 07 Oct 2012
Londons housing market is running in a completely different gear to the national market, which is still simply ticking over, given the economic potholes placed in its path. Credit conditions have been stiflingly tight this year, and those with substantial equity or deposits have been the primary drivers behind any improvement in house prices. With the greatest concentration of wealthier buyers in the capital, price growth has been largely limited to within the bounds of the M25.
However, there are tentative signs that the mortgage market may be improving, and lenders expect Funding for Lending to help them boost credit availability in the final quarter of the year. It remains to be seen exactly how many would-be first-time buyers will directly benefit over the coming months, but if we see a consistent increase in the number of new buyers able to leave the rented sector, we could see the market outside of London move out of neutral.