Mortgage lending plummets 19%
New figures from the Council of Mortgage Lenders have revealed that gross mortgage lending has fallen a massive 19 per cent on the previous year.
The dramatic downswing reflects an increasingly hostile property sector characterised by the worsening credit crunch, which has largely driven first-time buyers out of the market.
It is also a consequence of steadily declining house prices that have prompted the majority of prospective homeowners to postpone efforts to find property for sale in London or elsewhere.
Overall mortgage lending from banks and building societies came in at just £25.5 billion last month, dramatically lower than the £31.3 billion clock up in May 2007 when UK property was still appreciating.
Commenting on the worrying figures, CML director general Michael Coogan insisted the remortgaging market was faring relatively well - but voiced little surprise at the wider downturn.
He concluded: "The next few months will remain very weak for house purchase activity for the funding reasons which are now well rehearsed … The bad news on the housing market is pretty relentless at the moment."
Published 23rd June, 2008
© 2008 Estates IT Limited
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New figures from the Council of Mortgage Lenders have revealed that gross mortgage lending has fallen a massive 19 per cent on the previous year.