21 July 2010

Recent figures by the Council of Mortgage Lenders (CML) have shown that mortgage lending rose 15% in June, which represents a six-month high.

Gross lending during the month reached £13.1billion, the highest figure seen since December 2009 and is also 7% higher than June 2009. The CML did also mention that the caution must remain in this market, as this is a seasonal recovery and the immediate outlook is set to remain restrained.

Paul Samter, CML economist, stated: “There are signs of house prices stabilising and more properties coming onto the market following the abolition of Home Information Packs (HIPs). This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.”

The figures from the CML follow recent comments from the Royal Institution of Chartered Surveyors (RICs) that property prices will not continue to rise in the coming month. RICs believe that the suspension of HIPs had caused a rush of properties listed for sale. This resulted in a high level of available housing but a shortage of buyers will push house prices down.

 

 

Source: Home Move

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