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Low buyer competition 'holding back the property market'

A low level of competition among potential buyers is preventing transaction levels and prices from rising in the UK property market.

This is the view of Selwyn Lim, director of the property information website Mouseprice, who said there are simply not enough people in a position to buy homes at the moment.

"The availability of mortgages definitely plays a significant role in that," he remarked.

His comments come after Hometrack reported that demand for housing dropped 4.3 per cent in November compared to the previous month.

Mr Lim acknowledged that the double dip in the property market that many economists had predicted has not materialised, largely because interest rates have remained low.

"So, whilst prices are definitely weak, there has not been that big second fall in prices," he stated.

However, he said the reduced demand and the subsequent lack of competition for homes on the market is keeping a lid on market growth for the time being.
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