A new survey by the Professional Insurers Broker’s Association (PIBA ), the country’s largest group of independent mortgage and insurance brokers with over 850 member firms, indicates poor prospects for the property market over the next 12 months with over 95 per cent of independent brokers believing that the market will either decline or remain the same. Less than five per cent have expressed the view that it would improve.
Almost 60 per cent of brokers questioned also believe that the latest bank bailout deal will have absolutely no impact on lending practices.
The survey, conducted in April, found that on the other hand, 23 per cent believe it will have a positive effect while a further 11 per cent are convinced that it will impact negatively.
Rachel Doyle, Director of PIBA Mortgage Services says there is one clear message emanating from the survey: “The real problem is the lack of lending and that is directly impacting on the property market.
“Had the banking crisis not been so severe the property market would most likely have bottomed out by now. There is strong evidence of an underlying demand but applications are being declined on a large scale.
“Last Friday’s (29 April ) Central Bank figures show mortgage lending declining yet again in March, this time by 2.6 per cent. These drops are taking place on already dramatically reduced lending figures. Mortgage lending had fallen by almost 60 per cent between 2008 and 2009 alone,” she said.
On the issue of distressed mortgages, in the latest PIBA survey over 67 per cent of brokers believe that the current measures to protect mortgage holders in distress are inadequate.
Ms Doyle says the sooner a comprehensive set of measures are put in place to support distressed mortgage holders the better.
“There is a fairly wide consensus at this stage that more needs to be done to help mortgage holders in distress. It is in the interest, not just of those who are in difficulty, but of the wider economy too, that the Government finalises, at an early date, its package of measures, some of which are set out in the Programme for Government,” she said.
