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Cheap mortgages entice buyers back

Date: Thu, 19 Jan 2006

The growing number of cheap mortgages on offer could be encouraging buyers back into the property market.

The latest Royal Institution of Charted Surveyors (RICS) survey shows that house prices rose for the second consecutive month following fifteen months of falls as buyer activity increases.

Eight per cent of surveyors reported a rise in selling prices, compared to just four per cent in November. The poll also showed that many first-time buyers are being attracted back to the property market because of increased confidence and expectations that interest rates may fall ensuring cheap mortgages stay available.

"The housing market is definitely seeing signs of a recovery. We expect the positive activity at the end of last year to continue over the coming months," said RICS residential spokesman Jeremy Leaf.

He added: "Home buying and selling is being supported by a healthy job market and business climate, which looks set to continue for now though one potential obstacle to growth could be a shortage of available properties to meet growing demand."


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