Mortgage liquidity issues 'squeeze market'

The housing market continues its struggle to recover as a result of a lack of mortgagefinance, according to one expert.

Jeremy Leaf, spokesperson of the Royal Institution of Chartered Surveyors (Rics), said that many people will find themselves unable to take the next step on the property ladder.

His comments come after the publication of the latest UK housing market survey by Rics, which found a drop in the number of transactions typically conducted by surveyors last month.

Rics figures show that surveyors' average number of transactions now stands at 12.7 over the last three months, which is the lowest since the survey was started.

Mr Leaf said the lack of mortgage liquidity is stopping the recovery of the market.

"More needs to be done to reinvigorate a market whose confidence has taken a severe knock," he added.

Bradford & Bingley recently commented that the mortgage market "remains difficult", but that competitive deals remain available.