Well for us to take any sort of educated guess of where the property market is likely to head, we need to look at the amount of mortgages available for potential buyers. If the property market is to go higher, we at least need for the property buyers to return to the market. This includes both residential property buyers and commercial and investment buyers. For any sort of buying activity to get underway, we need to see the banks placing more residential mortgages and commercial mortgage products on the market. The reality, however, is that the number of residential and commercial mortgage deals available on the market are at record lows, and there are little signs that this situation is likely to change any time soon.

The reason for the shortage of mortgages and best remortgage deals on the market stems back to the fact that the mortgage lenders have taken a real hammering. This resulted in the banks that survived the credit crunch to pull the plug on a lot of the mortgage products that were on the market prior to the credit problems. Mortgage products have reduced from thousands to just a few hundred and this has mean that any buyers looking to buy property are having difficulty in securing loans. This is having a knock on effect on the reduction of property sales, resulting in a stagnant housing market.

Until the banks sort out their balance sheets, it seems likely that we will see this situation continue for a while and we can see the property prices stagnant for a long while.