Market conditions deteriorating say mortgage brokers

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by Kay Murchie

A study from the Intermediary Mortgage Lenders Association (IMLA) has revealed that mortgage brokers believe that market conditions are deteriorating.

The IMLA, which surveyed mortgage brokers, established that nearly 80% thought market conditions were getting worse, while 20% said they were unchanged.

47% of mortgage brokers said they expected house prices to fall while 43% anticipated them to remain stable. The report revealed that brokers in the South East were more optimistic.

Peter Williams of the IMLA said tmes are tough in the mortgage market, but key participants in the industry remain confident that we can steer clear of an all-out recession.

We are in a phase of readjustment in the markets, but that doesn’t mean we’re heading for a house price collapse or a recession, concluded Mr Williams.

Yesterday, the Nationwide said that UK property prices are lower than they were a year ago.

Prices dropped by 1.1% in April, the sixth consecutive monthly fall, and were down 1% from the levels seen compared with April last year according to the Nationwide. The fall represented the first for over a decade.