A typical 50-day wait for a buyer to receive a mortgage offer “increases the risk that sales will collapse and puts unnecessary pressure on all transactions within a chain” according the the National Association of Estate Agents.
The delay, revealed in an NAEA statement to the House of Lords, is as a result of the 2014 Mortgage Market Review, after which two thirds of the association’s agents reported a decrease in the number of buyers.
“This was the direct result of a slow-down in acceptance of mortgages, with it now taking an average of 50 days to receive a mortgage offer. This increases the risk that sales will collapse and puts unnecessary pressure on all transactions within a chain” says the statement.
The NAEA was making its statement in the consultation period of the House of Lords Select Committee's inquiry into the state of the UK housing market.
The association’s comments, made jointly with the Association of Residential Letting Agents, called on the government to adopt a longer term approach to housing policy and consider the full cycle, from making sure the country has enough skilled professionals to build additional housing, to giving more financial support to first-time buyers.
“Whilst we welcome the initiatives already announced this year such as Help to Buy ISAs and Right to Buy for housing association tenants, which will be replaced on a one-for-one basis, people are going to need even more support in accessing finance to purchase property once they are built” says the association.