LESS THAN 5 per cent of mortgage brokers believe the property market will improve over the next year, according to a survey by the largest group of independent mortgage and insurance brokers.

The Professional Insurance Brokers Association found that more than 95 per cent of brokers believed the market will either decline or remain flat over the 12 months. Almost 60 per cent of brokers said they believed the latest bank bailout would have no impact on lending practices.

Some 23 per cent said it would have a positive effect and a further 11 per cent are convinced it would have a negative effect. “The real problem is the lack of lending and that is directly impacting on the property market,” said Rachel Doyle, director of PIBA Mortgage Services. “Had the banking crisis not been so severe the property market would most likely have bottomed out by now. There is strong evidence of an underlying demand but applications are being declined on a large scale.”

More than 67 per cent of brokers believe measures to protect distressed mortgage holders are inadequate.

“There is a fairly wide consensus at this stage that more needs to be done to help mortgage holders in distress,” said Ms Doyle.