Despite predicting 4 per cent growth in the UK housing market in 2007, Richard Donnell, director of research at Hometrack, admitted that lenders’ risk strategies would be tested over the next 12 to 18 months. Speaking at the Hometrack seminar on ‘Moving into Uncharted Territory,’ he said: “There will be increasing risks within localised areas. Lenders will have to look at this data as it could impact on the issue of liquidity.”
Gary Styles, strategy and risk director at Hometrack, added: “The market as a whole, looking at headline rates, is quite benign, but there is a definite market within a market that has a number of risks. There will be some sub-regional areas that will experience a downturn in sales.”
Paul Hunt, head of marketing at Platform, agreed that a number of ‘risk pocket’ areas were emerging in the market, and lenders needed to keep an eye on these to be sure of their risk approach. He said: “It is an interesting point and I can see it already happening in certain areas. Where there are new builds and flats, mortgage lenders are becoming wary about their exposure in certain areas.”
He added: “It is definitely a dynamic in the market that lenders need to be aware of, and although it is not on our immediate radar, it definitely needs to be considered.”
