In its market commentary, CML chief economist Bob Pannell observes:
"UK economic prospects have deteriorated as a result of weaknesses in some of the major economies and renewed stresses in the eurozone area associated with the sustainability of government finances.
"As a result, UK interest rates look like staying lower for longer.
"Housing market conditions remain subdued, but pretty stable. Seasonal factors continue to provide some support, but underlying house purchase activity may drift lower over the coming months."
Nick Leeming, business development director of zoopla.co.uk, said,
"Banks are primarily focused on lending to wealthier buyers, and as a result these buyers continue to represent a disproportionate share of mortgage lending. Deals on low LTV products are remarkably cheap, while qualifying criteria on higher LTV products borders on the draconian and aren’t appropriate to the financial hardships afflicting first time buyers. Restrictive criteria are suffocating the bottom of the market, which in turn is exerting downward pressure on prices and has choked activity across all price brackets. First time buyers are the engine which drives the property ladder, and until they are given some relief the property market will remain in a state of gridlock."
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