2
Jun
Running on Empty
Nick Churton of Mayfair International Realty, based in
London, sees many parallels between the US and UK real estate
markets. As in the US, many more UK buyers are returning to
the market - or would do if they could secure mortgages!
A real estate industry without mortgage funds
is about as useless as a motor industry without gas at the
pumps.
Our Mayfair International Realty members
across the UK report an extraordinary state of affairs. Many
of our colleagues around the country have seen greatly increased
levels of property transactions, but in up to ninety per cent of
cases cash buyers funded these.
The banks are still hoarding money. The
new UK Government must get a firm grip on this problem.
Simplifying real estate transaction legislation, as they have done
recently, and giving first time buyers a tax break can help the
market, but not if lenders won’t lend. The Government
must find a way to stop this financial log-jam and allow eager
first time buyers the funds they need to climb onto the housing
ladder - without being hamstrung by crippling and even cynical
lending criteria.
Releasing funds will stimulate the rest of the
market and allied industries. The UK real estate market, like
that in the US, won’t heal itself. It either needs
government intervention or enlightened banks – preferably
both. It is essential to get mortgage funds pumping
again.
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