The Association of Mortgage Intermediaries (AMI) has released its latest Quarterly Economic Bulletin. The report focuses on the housing sector, economic trends and mortgages market.
The quarterly bulletin has forecasted no growth in demand and approvals in 2011 over last year. In its survey it found out that although the Loan to Value ratio (LTV) went up last year, still the proportion of first time buyers had actually fallen.
Robert Sinclair, the Director off AMI said: “We expect the (Q4) GDP figures to be revised upwards in coming weeks but inflation will continue to increase pressure for a rise in interest rates”.
Arguing that the bank of England has to do a balancing act he added, “However, the Monetary Policy Committee will continue to balance the competing risks of driving the economy backwards against the need to minimise the damaging impacts of inflation”.