Friday, August 7, 2009

Mortgage Lending in UK

Against a backdrop of very low housing activity, UK house prices appear to be stabilising.
During periods of house price falls, there are often monthly aberrations. However, the Halifax three month trend showed its first positive rise (of 0.8%) since 2007. This suggests that the most pessimistic house price forecasts for 2009, now look too bearish. The Institute of Chartered Surveyors have now changed their forecast from a fall of 10% to a small rise.

Mortgage lending in June also showed a small increase. But, it remains far below pre 2007 levels. This indicates a house price recovery is based on the very low interest rates and continued shortage of housing, rather than a renewed enthusiasm of banks to lend mortgages.

Quarterly Mortgage Lending Statistics

Statistic for Monthly UK Mortgage Lending

Monthly Figures for Recent Mortgage Lending. Source: CML


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