Housing market recovery ‘will be slow’

The property market is set for a sluggish recovery in 2010, it has been predicted.

Growth in the market will be slow in the months ahead, with gross mortgage lending of between £150 billion and £160 billion this year, the Association of Mortgage Intermediaries (AMI) has predicted.

Director Robert Sinclair said: “The shortage of housing supply for sale and the continued low level of mortgage funding will continue to constrain the level of activity in the market.”

He also argued that the market was “distorted” by the stamp duty holiday, which ended on December 31st, prompting a rush of transactions late in the year.

A slow market may stall price rises, which could help those seeking a mortgage to get on the housing ladder.

Such views were echoed by the Council of Mortgage Lenders, whose chief economist Paul Samter also suggested the stamp duty deadline will have affected the market.

As a result, buyer activity in January and February may be “particularly slow”, he added.

Leave a Reply

Your email address will not be published. Required fields are marked *