It has claimed that estate agencies will see business continue as usual, even though house prices are beginning to level off in many areas. This trend is set to continue more universally in light of the credit crunch, which will force other companies to adjust their lending criteria.
Paul Smith, chief executive of haart, said: “While the current credit crunch and its effect on major banks and lenders is certainly concerning, homebuyers looking to move will not be put off and we have not yet witnessed a drop in activity in our estate agency branches.
“However, we believe that the Bank of England should now consider reversing the latest interest rate rise, which many felt was unnecessary, as a reduction now would surely bring calm and a much needed renewed confidence.”
Smith warned: “The largest impact is likely to be felt by borrowers with higher loan to value mortgages, secured at higher rates. As always, first-time buyers will struggle. Vendors will need to be realistic regarding their price expectations, especially if they want to move before Christmas.”
