Increased mortgage availability could help property market recover?

07 May 2010

Written by David Whittaker.

Without further mortgage availability and the removal of other barriers to recovery, the recent upswing in the house building sector can not be sustained, the Home Builders Federation (HBF) has said.

The latest Construction Purchasing Managers' Index from the Chartered Institute of Purchasing and Supply in conjunction with Markit revealed that construction activity increased for the second month in a row with residential construction levels leading the way, expanding at its fastest pace since August 2007.

HBF said the report was "encouraging" but more needs to be done if the house building industry is to achieve a maintainable level of prosperity.

Steve Turner, head of communications at the organisation, said: "We have seen the market stabilise but it is too early to talk about a sustainable recovery until we see mortgage lending return to a more sensible level."

Mr Turner cited the lack of mortgage availability and land as obstacles to the growth of the sector as well as regulatory barriers.

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