More support for mortgage market required, says AMI

The housing market is still being constrained by a lack of available credit, meaning potential property buyers are unable to secure mortgages, it has been claimed.

In a new report, the Association of Mortgage Intermediaries (AMI) suggested that first-time buyers are particularly affected in this way.

The organisation also said that house prices will continue to fall, although the rate of decline will slow.

AMI director Robert Sinclair said: "Those with good deposits or plenty of equity can access very competitive rates, but those who can`t are unable to take advantage of lower house prices. First-time buyers are the largest group affected."

He added that the government needs to inject more money into the mortgage market in order to take advantage of an upturn in consumer interest.

Mr Sinclair also called for an extension of the stamp duty holiday or the abolition of the duty.

In his Budget yesterday, Chancellor Alistair Darling announced he was extending the stamp duty holiday on properties costing up to £175,000 until the end of this year.