Buyer confidence in the housing market 'growing'

Prospective house buyers are beginning to develop more confidence in the market, according to a mortgage expert.

Concerns about the economy, tougher mortgage lending criteria and a fall in house prices estimated at 15 per cent in the past 12 months by Nationwide have combined to subdue the housing sector.

However, Ray Boulger, senior technical manager at mortgage adviser John Charcol, said the situation is beginning to improve.

He explained that although the residential property market would not stabilise until the third quarter of 2009, buyer activity is already showing signs of picking up.

"There is a marked change of mood among purchasers over the last few months and there is definitely more confidence around - particularly among first-time buyers who are obviously key to the market," said Mr Boulger.

The expert warned, however, that the upturn in the market would be hampered by the current lack of high loan-to-value mortgage products available to borrowers.