By my comment on credit history I meant that lenders are more stringent now because of the crunch and few will lend to anyone without a 5 year clean slate- and that means on everything including a minor breach on a phone bill payment. Utility companies and other firms are apparently registering small debts and many people don't even know their rating has been affected as its not formally notified. With things the way they are for people with rising costs for even the basics I think its difficult for a lot of people to stay squeaky clean. I've been exploring remortgaging through a couple of brokers and this is the general advice I've been given as well as to expect to pay £2-£3k (sometimes more) for an upfront mortgage admin charge which itself is prohibitive. Most brokers are suggesting that people check their Equifax rating before making a formal mortgage application, as to get a knock back on this would only worsen the position, and it will dictate which lender the broker will to talk to.

It really is scary out there. As a society we really do need credit on reasonable terms in order to function and its not around any more. Without first time buyers getting loans they can afford the property market stagnates. There are also few buy to let arrangements around which means that the rental supply isn't growing either. I don't actually think its been that harmful to the overall market position as the supply of rented stock in the UK is probably lower than most European countries. Last night's Newsnights report on the current problems and predictions of a further worsening situation was very dire. I wouldn't personally take out a mortgage in the current situation if I hadn't had one already.

Re; the local property market; it could be good news still for people wanting to buy a small flat, as there are plenty of them on the market so there are opportunities to negotiate. The market for family houses has however apparently rocketed due to the good schools in the area- the people buying these are moving from more expensive areas such as East Dulwich and buying bigger for less. So there are completely different markets for various types of property and some will increase more rapidly than others. However I do know plenty of owners of small flats who can't even get any viewings at all.

Another 5 years of this I think before we get something a bit more stable..