Who’s to blame for the disastrous state of the housing market? Some people have blamed the banks for irresponsible lending whilst others say the stricter regulations the FSA have imposed on mortgage lending institutions are the cause of the problem.
The FSA has responded to criticism about its proposed changes and decided to delay publication of its plans until the summer. This has to be good news for first time buyers who now have another 6 months to find a suitable mortgage before the new affordability rules come into force. This delay also provides lenders with the opportunity to launch new products.
But will it be enough to give a much needed boost to the housing market? Interest rates are set to rise and that could scupper the hopes of many first timers who hoped to get a good mortgage deal.
Meanwhile, the UK rental sector is booming. The editor of Property Hawk, the landlord information site, thinks that lots of people will still look for good quality rentals next year.
He said that more people will rent rather than buy because of the uncertainties surrounding the economy and the continued difficulties they encounter when they try to obtain a contractor mortgage. He also thinks that the stock of rental properties will increase slowly next year as buy to let landlords recover a sense of confidence in the housing market.
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