Lack of repossessions 'helping property sector'

In the aftermath of the global economic downturn, home loan agreements such as  have become harder to afford for many Britons due to the large deposit requirements on many such products.This has resulted in the sector becoming more subdued in terms of activity, but David Smith, economics editor at the Sunday Times, does not feel this trend will continue to grow for much longer.Mr Smith explained that even though the price of homes slipped somewhat throughout the financial slump, the market is now performing better than "most people had expected" as repossessions are now less common.Figures published by the Financial Services Authority recently concur with this, as they revealed the number of new arrears cases fell annually by four per cent in the second quarter of 2011.In related news, prospective holders of home loans such as tracker mortgages are facing an increasingly difficult task to get on the property ladder, new research has shown.According to a study published by First Direct recently (September 17th), the cost of deposits and houses mortgage customers are dealing with at present is significantly higher than income rises being seen across the country.It was established that in the last 21 years, the average down payment on an abode in the UK has gone up to almost £66,000 from a level of around £6,700 in 1990.This figure is not in line with the average household income hike of 250 per cent in the same period and Bruno Genovese, senior savings product manager at the financier indicated this is why the average age of  is going up.Nevertheless, Ben Wilkie of What Mortgage noted recently that struggling homeowners should consider interest-only mortgages.Meanwhile, mortgage holders struggling to meet their repayment requirements should seek to discuss this problem with their financier as quickly as possible, an expert has said.In the wake of the recession, many householders with home loan packages such as tracker mortgages are finding it tough to afford the monthly fees attached to their product.And, according to Catherine Hearnden, director at My Mortgage Direct, it is vital for anyone encountering such issues to speak with their lender at the first sign of trouble.Ms Hearnden explained that the majority of companies try to be understanding when it comes to helping customers in difficulty, but warned there is only so much a financier can do."As long as people get onto their lenders the minute they have got a problem, then I think it is dealt with quite well," she added.This comes after the Building Societies Association suggested recently that the government must join forces with financiers to aid struggling mortgage holders.