Property market 'will improve next year'

05/08/2009

Improvements in the housing market are unlikely to be seen until next year, a mortgages expert has said.

Peter O'Donovan, head of mortgages at Bestinvest, observed that house prices seem to have bottomed out now.

He added that the next few months will see a gradual rise in the market, which will boost confidence and support growth in the property sector.

The comments come in response to the latest Nationwide house price index, which revealed that prices rose by 1.3 per cent in July.

This is the largest increase since February 2007 and brings the value of the average house to £158,971.

"People may be more confident to come into the market, so prospective sellers might feel that they have reached the bottom they are going to get for their property and obviously be wary that if they are buying something then those prices are going to increase as well," concluded Mr O'Donovan.

Tags; Income Worries and Debt,

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