repossession levels will continue to rise this year (February 01, 2008)

Rics offers bleak picture of 2008 property market

The same couple could also face spending 40.3% of their combined net wage on mortgage repayments.

Rics senior economist, David Stubbs, says: “At the start of 2008, first-time buyers are finding it even harder to get a foothold on the housing ladder and the signs are that conditions are unlikely to get better in the short-term. Mortgage lenders are demanding ever higher deposits as the credit crunch continues to take effect.”

For those new to property ownership, the cost of buying a home has been adversely affected by a reduction in loan-to-value ratios, as a result of the credit squeeze, and a rise in stamp duty caused by the high property inflation of recent years.

The Rics is also forecasting that repossession levels will continue to rise this year, predicting that 123 homes will be repossessed each day of 2008.

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