Buy-to-let
With 12 per cent of mortgage lending serving the buy-to-let market (BTL) a decline in this demand could dampen the market.
Kate Barker, a member of the Bank of Englands Monetary Policy Committee (MPC) and Gordon Browns top expert on the property market, believes that financial market turbulence is unlikely to trigger a change.
She said: The evidence from business surveys and housing market indicators will be an important part of my judgement over the next few months about how far the downside risks to the outlook have increased.
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According to the housing guru, the market is vulnerable to a major change in expectations and recent house price surveys have confirmed that the market is slowing.
The Royal Institution of Chartered Surveyors (RICS) revealed that deteriorating confidence is being driven by the demand side of the market, with interest rate increases and related financial markets issues depressing surveyors outlooks.
RICS spokesman, Jeremy Leaf, said: The combination of rising interest rates, the introduction of HIPs and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers.
