Price war prediction for 2013
Speaking at the Mortgage Business Expo James Chidgey said: “If you think you have seen a price war so far this year you haven’t seen anything yet.”
Chidgey, who was discussing the effects of the myriad of government initiatives on the new build sector, said he was particularly “bullish” about Funding for Lending and that it was his favourite scheme by far.
He predicted that lenders would ramp up competition in Easter next year which is traditionally the start of the home buying season.
He said: “I think lenders will start having to lend and they will need to adjust lending criteria but also their higher loan to value lending.
“I predict we will have about £150bn in the market next year and that will sustain us until 2013. Next year will the most promising out of all the past five years we have come through.”
But he added that the government and lenders had a big part to play in promoting schemes to the public because the was a general consumer consensus that they could not get a house.