Savills warns that housing market will remain slow

The housing market will slow in the second half of 2010, according to Savills.

Jacqui Daly, director of research at the property firm, said the mortgage market remains the slowest part of the housing market.

However, she noted that it is quite disparate, with the south and the north of the UK responding in different ways to the stuttering economic recovery.

"We have seen a stabilisation in terms of the level of stock coming onto the market. The economy is slowing and we expect the housing market to slow down again in the second half of this year," Ms Daly said.

"We do expect transaction activity to stay low - where it is now."

She said that there are unlikely to be significant price falls in the market, but because of the pre-existing economic constraints, transaction levels are unlikely to pick up substantially.

Recent research from Santander revealed that over a million Brits were unable to sell their properties over the last year. 

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2010-08-25 12:00:56 © Moneyextra.com