By Dave Lord

WITH THE credit crunch biting, a leading Perth solicitor has revealed that many local homebuyers are struggling to secure a mortgage as banks and building societies rein in their lending.

But Alastair Anderson, of Anderson Beattie Lammond, insisted Fair City estate agents are so far avoiding some of the most serious problems experienced elsewhere.

He said, “There have been reports of job losses at solicitors’ offices elsewhere but at present there does not seem to be any reduction in staff at local firms dealing with residential properties.

“We have heard anecdotal evidence about cutbacks in Edinburgh and Glasgow, with one firm cutting 20 jobs and another moving to a four-day week.

“Other firms are simply refusing to take on any more residential properties as they have too many on their books.

“It would seem that the credit crunch is beginning to have a marked effect in the big cities, but in Perth we appear to have been protected from such trends.”

Nevertheless Mr Anderson, who is also chairman of the Perthshire Solicitors Property Centre, revealed that total house sales in the area have slipped significantly over the past year.

“Residential sales have been slowing down,” Mr Anderson said.

“There is a property logjam,” he added.

“People still want to sell and there are buyers keen to make a move.

“But the main problem they face is securing a mortgage.

“Over the last four weeks, local solicitors have sold 128 properties so there is still activity in the market, even if sellers are having to be much more patient.”

Despite the doom and gloom, Mr Anderson pointed out that average property prices have held firm at just over £160,000.

He said the current climate had created “huge barriers” to borrowing.

“Borrowing restrictions are a real headache,” he continued.

“Before the Northern Rock crisis, lenders were happy to extend 100% loans and above to cover a purchase and the expenses involved.

“It is now all-change and they want 10% deposits.

“With the vast majority of properties over £100,000 that is a challenge for potential buyers.

“On the plus side, the logjam has not impacted adversely on average prices and in some sectors, such as bungalows, the average has leapt 4%,” he said.

Mr Anderson added that, in an ideal world, mortgages would be easier to access for first-time buyers.

“Otherwise there will continue to be a build-up of properties,” he said.

“Sadly, we see little sign of money being freed up in the short term.”