Liquidity In Homeowner Loans Essential To Economic Recovery
Over the course of the past few months there has been a great deal of media attention on the state of the economy in the UK and as we get nearer to the New Year, many people are starting to look to the future and consider what we might expect to see happen throughout 2009, along with what action can be taken to turn around the currently gloomy outlook.
A large number of experts believe that the key to financial recovery lies in the housing and homeowner loan markets, but Government assistance is still required to provide the financial boost which could help restore liquidity for secured loan providers.
One estate agent, Chesterton Humberts, has claimed that the housing market has now reached its lowest point and there are a large number of potential home buyers wanting to enter the market, but who are being held back by their inability to obtain the necessary funding through a suitable secured loan or mortgage.
They believe that the Government should take action to improve lending on homeowner loans, by using nationalised banks such as Northern Rock and Royal Bank of Scotland, particularly in the first time buyer sector, as the current lack of liquidity is the only factor holding back many potential home owners.
Robert Bartlett of Chesterton Humberts said “Potential buyers are now in far greater numbers than in previous months, believing we are very close to the bottom of the market, with the number of offers being made, bouncing back to levels above those seen a year ago.
However, until the banks start lending again we are unlikely to see a measurable increase in transaction volumes.” He also said that he thought the lettings market would remain strong through the coming year as potential buyers continued to save up sufficient deposit in order to reduce the loan to value ratio they required for a house purchase.
