A recent report has indicated that it is unlikely that there will be any significant increase in the availability of home loans in the near future.

Lenders have stated that home loan values have reached their lowest levels since April 2001, and that it was unlikely that there would be an increase in lending in the foreseeable future. The Council of Mortgage Lenders stated that between December and January there was a drop of 8 percent in mortgage lending, which equated to around £12.4 billion.

The drop reflected a drop of 52 percent compared to the same period last year, and with mortgage lenders continuing to restrict mortgage lending it seem that the situation could continue. The CML also went on to state that the mortgage sector remained very subdued and the availability of home loans was still severely restricted.

Some analysts have also agreed that banks are still reluctant to lend to many people when it comes to home loans, although another factor contributing to the weak figures is that many people are holding off buying property at present because prices are still falling.

One official from the Council of Mortgage Lenders stated: “Mortgage lending activity continues to be very weak and while people are searching eagerly for some signs of recovery, it would be unrealistic to expect a meaningful revival in lending in coming months.”

One mortgage broker added: “The January lending figures are a joke. Enough is enough. It is time for the government to get the gloves off and force the banks to lend.”

In the meantime the government is considering quantative easing, which involves the purchase to assets such as government securities and corporate bonds, to try and get another £75 billion into the system in order to boost lending to consumers and businesses.

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