A new report from the RICS suggests that the UK’s housing market is suffering a fresh downturn as public sector workers become increasingly concerned about their job security and first-time buyers continue to be deterred by the lack of mortgage finance .
The Institution’s housing market survey discovered that property prices fell last month for the first time in a year. Some valuers and surveyors say they have been astounded by the ferocity of the downturn since George Osborne’s emergency budget.
An increase in the number of new properties coming onto the market has driven down prices, says the RICS. This surge can be attributed in part to the abolition of HIPs, but surveyors are also warning that repossessions are increasing.
A Huddersfield firm of surveyors remarked that repossessions are making up a high proportion of its monthly sales. However because these are at low prices there could be a knock on effect that results in values going down further later in the year.
To minimise the risk of encountering mortgage repayment difficulties, freelancers should be looking at more than the initial interest rate when they are shopping for a contractor mortgage, according to the CML. Sue Anderson, from the Council, advises people to take the time to scrutinise each deal in order to clearly understand the advantages and limitations of the mortgage before committing to anything.
Capped rate mortgages, which combine the best bits of both a variable rate and a fixed rate mortgage, are making a comeback. These ‘best of both world’ offers have been in short supply in recent years but four lenders, including the Coventry and Britannia building societies, have now started offering them again.
Meanwhile, mortgage fraud cases are on the increase in England and Wales. The KPMG’s fraud barometer found that 21 cases of mortgage fraud totalling £96m were reported in the first half of 2010. Last year the total was £77m for the entire year.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: 18Months by Seven_Null7
