More needs to be done to get banks lending, firm claims

More should be done to get banks lending, it has been suggested.

Commenting on the issue, property website Smartlandlord.co.uk said that action needs to be taken to ensure that landlords and first-time buyers are able to secure credit.

According to the firm, the Bank of England will now be "relying solely" on quantitative easing to attempt to improve credit conditions as interest rates are almost as low as they can get and further reductions would be futile or even potentially damaging.

It added that the latest credit conditions survey indicates that banks expect such quantitative easing to help them increase lending in the near future.

Smartlandlord.co.uk said: "This is good news for the housing market in general, but those at the margins will continue to be penalised for longer - both landlords and first-time buyers are likely to continue to struggle to get loans."

Earlier this month, Peter O`Donovan, head of mortgages at Bestinvest, described the introduction of new mortgage products available at loan-to-values of up to 85 per cent as "excellent" news for the UK`s property market.