LSL Property Services group chief executive Simon Embley says the funding crisis that has gripped the mortgage market will begin to ease by 2014, allowing more first-time buyers onto the housing ladder.
Speaking at the Building Societies Association annual conference in Birmingham last week, Embley said: “First-time buyers still want to get on the housing ladder. What we have to remember though is that there were 600,000 housing transactions in 2010 compared with the long-term average of 1.2 million.
“So when we start to see the return of mortgage liquidity, which in my view will be around 2014, and when we see the special liquidity scheme and credit guarantee scheme repaid, we will start to see more money coming back to the market. And the only place that money can go is high LTVs.”
London & Country head of communications David Hollingworth says: “Improved liquidity will help the whole market but the market has become more segmented by loan to value. I think the higher LTV section of the market is where you will see bigger changes taking place.”