11 Aug 2010
Head of consulting at Ducalian Timothy Lambert said many people wrongly believe prices will rise in the short-term.
He noted financial institutions feel under pressure to increase lending following recent positive financial results, but there is unlikely to be significant changes over the next few months.
Mr Lambert explained banks are predicting there is likely to be a second drop and are therefore being cautious with their cash."Whilst someone may have a good credit score and track record, if a house dips in value by 20 per cent, that is the banks only collateral and they don't want to get into the same territory as three years ago again,
" he added.The specialist's comments follow the release of a survey from the Royal Institution of Chartered Surveyors, which revealed its members have reported a drop, rather than a rise in house prices in July.
Source: Houseladder Ltd
|
