Housing market 'has a long way to go'

By Jonathan Dawes, Fri 26 Sep 2008 - Published in Mortgages

Those with mortgages should be aware an expert believes the property market will not recover immediately, despite recent government actions.

John Heron, managing director at Paragon Mortgages, said it was "crucial" for the government to take moves to improve the housing sector, due the level of dysfunction in the market.

He explained: "[The government has] been forced to recognise the criticality of the situation. I think it has improved but we have a long way to go."

Earlier this month, it was announced that there will be temporary break on stamp duty from properties valued at Ł175,000 or less, while a shared equity scheme and mortgage rescue programme was also announced to help those with mortgages.

According to the Halifax house price index, prices fell by 1.8 per cent in August, following falls of 1.7 per cent in July and 1.9 per cent in June.

In addition, house prices that month were 10.9 per cent lower on an annual basis, having returned to the level they were at in February 2006.

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