CML: Slight rise in October mortgage lending
Figures released today from the Council of Mortgage Lenders (CML) have revealed a slight improvement in mortgage lending for October.
Mortgage lending rose £18.7 billion, almost 7%, however, the CML has cautioned that continued weakness is expected in the market.
Despite the slight increase, October’s lending is still 44% lower when compared with October 2007.
According to Michael Coogan of the CML, consumer confidence is now being affected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing lack of mortgage funding.
Some industry experts have suggested that the decline in mortgage lending may have reached its lowest point.
Meanwhile, the Royal Institution of Chartered Surveyors (Rics) recently highlighted that its own surveys had shown a rise in enquiries from would-be buyers, which is seen as a measure of future trends in home sales.
While the slight rise in mortgage lending could be taken as good news for the housing market, there are still many experts predicting that house prices have further to fall.
Economic forecasting agency, Capital Economics, recently predicted that house prices will fall 35% by next autumn, from their peak of last summer.
Finally, the Centre for Economics and Business Research (CEBR) has predicted that house prices will fall in value by 25% from their peak. The organisation believes that house prices will not recover to the levels they peaked at in 2007 until 2013.