| Mortgage Lending up in June |
21-Jul 10 @ 12.25 PM |
|
Gross mortgage lending in June was an estimated £13.1 billion, a 15% increase from £11.4 billion in May and a 7% increase from £12.2 billion in June last year, according to new data from the Council of Mortgage Lenders.
Gross lending in the second quarter of 2010 was an estimated £35 billion, up 17% from the first quarter of this year (£30 billion) and up 7% from the second quarter of 2009 (£32.7 billion). Lending in the first half of 2010 remained unchanged from the first half of 2009 (£65 billion).
CML economist Paul Samter said:
“Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.
“There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.
“The FSA has outlined a clear direction of travel as part of its mortgage market review. The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit.”
Nigel Lewis, property analyst from FindaProperty.com said:
“New properties have flooded the market in recent months. This has put pressure on house prices and we’ve seen slowing – and in some places declining – price growth as a result. The 15% rise in lending is uncharacteristic of the traditionally quiet summer months and may help to alleviate the pressure from increasing stock levels. However, the number of loans is still relatively low compared to peak and unless we see a decline in stock levels, prices are unlikely to rise much further this year.
“It’s unlikely that the base interest rate will be increased before the end of the year so potential house buyers with a bit of equity behind them will still be able to benefit from attractive mortgage deals. But lack of confidence and the threat of further economic woe means demand won’t increase dramatically in the medium term.”
|
| |
| |
| Latest Market News |
21-Jul 10 @ 12.23 PM |
|
The average UK house price is now £200,341 compared to £189,344 12 months ago according to the latest Assetz House Price Watch.
Average UK house price fell slightly from a high of £200,475 in May 2010 and are now only 6.8% below their peak whilst the 6 month rolling annualised rate of growth shows 6.6%
The latest figures show that average house prices were 7.2% higher in June than at the same time in 2009. Assetz compiles monthly average figures taken from five of the major house price indices to offer a more accurate picture of house price trends.
The annualised average rates of growth continue to show increasing market stability with the six month rolling average now showing 6.6%, down from a peak of 11.96% in October 2009.
Chief Executive of Assetz, Stuart Law, said:
“The latest figures from Assetz House Price Watch show that we remain in the midst of a consistent housing recovery. As predicted, however, annual UK house price growth continues to slow to a more sustainable level. Similarly, the latest CML gross lending mortgage figures continue to point to an increase in consumer confidence, with more buyers encouraged to return to the market amid improving conditions.
“The Government’s austerity measures and the rumoured second banking crisis could still dampen house price growth next year. However, the fundamental lack of supply in the market, as a result of a lack of government funding for housing associations and planning restrictions, will continue to drive up prices modestly this side of Christmas and beyond.
‘Mortgage rates are also likely to be kept low for the foreseeable future. I would not be surprised if the base rate is still at 0.5% at the end of next year, although there is a 25% chance it will have increased to 2% in this period. This is great news for homeowners on lifetime tracker mortgages and is likely to encourage even more buyers into the market.
“Current house prices are like a coiled spring, and with the impossible-to-solve housing supply problem I predict another boom period at some point later in the next ten years. For the year in hand, I still expect to see a modest 5% overall growth as the positives continue to outweigh the negatives. 2009 was also an uncertain year but our 5% prediction turned out to be the most accurate in the market at a time when most predicted prices collapsing. We may well see the same again this year.”
|
| |
| |
|
|
|
Home
Property Search
