I was interested to read a prediction by the Counsel of Mortgage Lenders that net mortgage lending this year is likely to be just £6 billion, the lowest annual total since 1980. Net lending is what borrowers actually owe their lenders after they have paid off some of the capital etc. This figure represents a fall of almost 95% from the £108 billion of net lending in 2007. This figure does point to the initial concerns regarding the housing market and shows inherent weaknesses. As I have mentioned in previous blogs, with no clear strategy from the Government in respect of the housing market, continuing economic uncertainty and job insecurity, people are less inclined to move house. Coupled with that you have the problems that first time buyers have in getting on the ladder then there is a real problem of a stagnating house market.
I will continue to monitor matters and keep you updated.
Head of Property Services
- Don’t break up the banks (blackadderspropertynews.com)