ESTATE agents in Mansfield have called on High Street banks to start lending again to help give a boost to the housing market.
The call comes following national reports that home ownership will fall sharply, taking a back seat to renting, as people are forced to wait until they are in their forties to get on the housing ladder.
This week, David Miles, a member of the Bank of England’s Monetary Policy Committee claimed that the housing market will never go back to where it was.
He said the credit crunch has created a new world where there will be a ‘lower rate of owner occupation and a bigger rental sector.’
Miles said he did not think we should regret the fundamental change in the housing market caused by the credit crisis, and said that renting could be of benefit the UK economy.
“I do not believe that the housing market and the mortgage market will get back to where we were in the years leading up to the crisis. I also do not think we should regret that,” he said.
He said that the economy might become more stable if Britons were less dependent on changes in house prices and mortgage rates.
But Mansfield’s Whitegates branch manager Avril Davis said that the only way young people can afford to buy a house is by securing a large deposit beforehand.
“If you want a decent mortgage then you need a decent deposit but not many young people have £10,000 unless they borrow from mum and dad,” she said.
“It is up to the big High Street lenders to start lending again, the market is very price sensitive at the moment so properties have to ve valued correctly.”
Estate agent John Sankey believes that house prices in Mansfield are slowly falling.
“There are strong signs that High Street lenders are beginning to lend again, it is inevitable as that is how they make money but they have had to build up their balance sheet since 2008, but I am an optimist and confident things will improve in the New Year,” he said.