"The HBOS data released this morning demonstrates that it would be premature to assume that house prices have yet bottomed out despite the more positive figures published by Nationwide yesterday. RICS is, however, more confident that the low point in terms of transaction activity has now been seen and that a greater level of buyer interest will be underpinned by the drop in both interest rates and house prices. Even so, the level of turnover in the market is still way below what is consistent with an orderly market.
"It is important that the government does not use the very modest pick-up in sentiment in the sector as an excuse to not provide further measures to help support accessibility to the market, which has been badly damaged by the decisions of lenders to scale back loan to value ratios. In particular, first-time buyers are facing challenging circumstances in getting a foot on the property ladder at a time when the increased demand for other forms of housing tenure is putting severe pressure on local authority provision."
