Mortgage lending levels rise for October
Figures that have recently been released have shown that mortgage lending for the month of October rose by around 7 percent, with gross mortgage lending totalling £18.7 billion for October compared to £17.5 billion for September. However, whilst mortgage lending for the month has risen compared to the previous month officials have said that lending in October was still around 44 percent lower than the same time last year.
The figures were released by the Council of Mortgage Lenders, and an official from the CML said: “While lending in October ticked up from a low figure in the preceding month, the outlook is one of continuing weakness for housing and mortgage markets in the coming months, despite the Bank rate cuts in October and November. Consumer confidence is now being afffected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing shortage of mortgage funding.”
Also on the rise is the number of properties that are being sold by estate agents, with the National Association of Estate Agents stating that its members have reported a slight rise in sales, after average weekly sales fell to less than one property per agent earlier this year. However, estate agents have also seen a drop in the number of potential buyers that are registering onto their books.
An official from the NAEA said: “Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago. He goes on to say ‘Prices are becoming realistic, and we hope that this provides the boost needed to encourage those families who so desperately want to buy house to get onto the market.”
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