4 Apr

Market 'will be determined by mortgage troubles'

Market 'will be determined by mortgage troubles'

The future of the UK housing market will be determined by how the situation develops in the mortgage sector, it has been claimed.

Head of residential research at Knight Frank Liam Bailey added that the prime mortgage market is also not "immune" from problems linked to the credit crunch.

However, if matters "return to normal" in the months ahead, then there will probably be zero growth seen in this sector by the end of 2008, he claimed.

Moreover, London is performing well at present, he noted, even if there may be troubled times on the horizon.

"Although there are difficulties in the city, lots of banks are needing staff here. It's just that we have a difficult 12 months ahead of us", he commented.

A large number of mortgage products have been removed from the market in recent times, a recent study from Moneyfacts found.

Within a single month, 2,026 services were taken off the agenda, it said.ADNFCR-1222-ID-18538190-ADNFCR

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