A property expert believes the changes needed in mortgage lending and house prices for the UK property market to recover are long overdue.

The current crisis has partly been caused by the fact that the housing market has been allowed to "run amok"in recent years, says Paul Holmes, chief executive officer of first-time-buyer solutions firm Firstrung.

Private landlords with smaller portfolios have felt the impact of the economic downturn, as the buy-to-let mortgage market has contracted despite significant interest rate cuts by the Bank of England.

But professional renters with 20 properties or more are taking advantage of low house prices and repossessions to add to their portfolios, a study by Business Development Research Consultants found.

Mr Holmes said desperate sellers are likely to cut their prices dramatically to levels affordable for the average homebuyer.

"The healthy correction in mortgage lending and in the housing market is long overdue and it will be a good panacea for a lot of us,"he said.ADNFCR-2002-ID-18999612-ADNFCR

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