Market reports have continued to show that buy to let mortgage lenders are prepared to lend with high income multiples and high Loan To Values. However, industry sources say that mortgage lenders are not to blame primarily because many feel that it is about time the government stepped in to rescue fixed rate mortgages.

Yesterday another study revealed that young couples in UK were finding it increasingly difficult to get on to the property ladder. But experts argue that on the face of it a number of factors are deterring first time buyers, including the threat of a property downturn or even increasing interest rates.

Today’s report that over the past two months, the South East has accounted for most new homes being marketed in the UK (27% in May), and the high demand has been matched by steady monthly price rises, could mean that all is not lost in the market. Additionally, it was reported that London led the way for new home price rises in May, up 7.5% on April and up 9.5% annually since May 2007.

The rice in house prices in South East and in London could bring to question the issue of demand v supply. What is clear is that the supply of property is a serious problem that should be targeted with a bit more vigour. It does not take a genius to work out that with a continual lack of supply and high demand house prices will continue to rise.

First-time buyers are under significant pressure when it comes to home ownership. A report by the Department for Communities and Local Government shows a serious decline in the number of first time buyers. It is highly regarded that the decline is due to youngster wanting an easy life i.e. not prepared to put in extra hours to raise enough money for the property deposit.

Today's figures show that year to date only 165,000 houses have been built and the Government has made it clear that it wants the number of houses being built to reach 200,000 a year, but many expert feel that the number is still low compared to the demand for housing. Market analysts also say that many in the industry expected some relief after some of the banks cut their rates, but in the end it all turned out to be increasing rates for fixed mortgages, and no light at the end of the tunnel.

Perhaps, this could be the reason why many borrowers would like to see the Government step in and offer some sort of incentive for lenders to reduce their fixed rate mortgages, as the mortgage and housing market is just as important as the banking sector which is regularly propped up and supported. Mortgage lending remained slow in May with total lending down 19% over the year, figures from the Council of Mortgage Lenders (CML) showed Thursday.

Recent reports also show that lending has also recovered slightly since reaching a record low of £23.9bn in December last year, but much of the activity has been remortgages rather than loans for house purchases. According to the CML, the Bank of England's data on mortgage approvals for house purchases suggested lending would continue to be “very weak” for months to come.