Chance of housing market improving 'is improbable'

The housing market is unlikely to pick up any time soon, it has been claimed.

According to the Royal Institution of Chartered Surveyors (Rics), figures released by the British Bankers Association (BBA) which indicated that mortgage approvals are continuing to fall could weaken interest from potential buyers over forthcoming months.

Rics chief economist Simon Rubinsohn said despite the slight easing of decline of property sales in November, recorded in the Nationwide house price index, it is "improbable" that this marks a turning point in the market.

He added while the government's impending fiscal boost may curb the severity of the economic downturn, "it will not prevent a sharp jump in unemployment over the coming year."

Meanwhile, Rics senior economist Oliver Gilmartin said a drop in lending from mortgage brokers could make things difficult for first-time buyers trying to get onto the housing ladder.

Although he added that the government's decision to consult on introducing a tax free saving scheme for fist-time buyer deposits could lead to increased housing transactions.

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