Next year could very well be the ideal time to buy a property - if a survey by the Building Societies Association (BSA) and seen by Clear Property Investment is anything to go by.

Around two-thirds of those questioned by the BSA believe the fall in house prices has resulted in opportunities in changing home or in property investment.

David Hollingworth, of London & Country mortgage brokers said indications were that prices would remain stagnant until at least 2012 and could even fall next year. But he added: "Conversely this could be a good time for those either looking to get onto the property ladder or to upsize."

Best deals are for those looking to upsize as the falling value in a three-bedroom home for instance, would be higher than that of a one-bedroom or studio apartment. Hence, those looking to downsize could lose out.

Mr Hollingworth added: "Without doubt it is definitely a buyers' market right now and likely to remain so for quite some time to come. Those who are in the position to buy a property should certainly make the most of this opportunity, and if you plan to live there for a while - or even hold a buy-to-let property as a long term investment - then modest price falls over the next year shouldn't make much of a difference."

Paul Broadhead , BSA Head of Mortgage Policy, was more cautious when he pointed out: "Barriers remain which might prevent potential buyers from acting on these perceived opportunities. Worries persist about job security, the ability to raise a deposit, and obtaining a mortgage from lenders."

The feel-good factor was further dampened by the Council of Mortgage Lenders (CML) who warned that from April 2011 banks would be forced to repay government bail-outs, resulting in a fall in mortgage lending.

In fact, the CML predict mortgage lending to drop to around £6bn next year - its lowest level in three decades.
Ray Boulger of the mortgage advisers John Charcol, said: "The figures are startling. They demonstrate how much of a problem the banking crisis is causing for anyone looking to buy a property.

"It is the direct result of the reckless lending by banks before the credit crunch. It means first-time buyers will face huge obstacles, while anyone that wants to move on but doesn't have much equity will find they are trapped."
For further information on the mortgage situation and buy-to-lets contact any of our Clear Property Investment team.

 

 

 

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