less cheap credit will help housing marketBuyers may be finder it harder to secure an attractive bad credit mortgage deal, but this will at least have the benefit of ultimately leading to a return to more affordable prices, Firstrung has said.

 

Acknowledging that the turnaround will be a long process, Firstrung CEO Paul Holmes has said that the market will now head downwards towards a more manageable level, away from the "insane" heights that it has recently reached.

 

However, Mr Holmes added that only a major correction would help restore first time buyer numbers to traditional levels, even if an actual crash would prove highly problematic.

 

"The one word that is key here is affordability. Affordability has been detached from the market place for years as people have had access to cheap and easy credit and the market has been pushed to insane heights," Mr Holmes commented.

 

"There's only one way the market can head now, and that's downwards. How long it takes to reach affordable levels for first-time, or even second-time, buyers is a question nobody can answer," he added.