New mortgage lending fails to impress

| June 30, 2010
”New

The number of mortgages approved for house purchases remained all but static in May, compared with April, at 49,815, according to Bank of England data.

The figure was down on the previous six month average and well behind the November 2009 peak of 59,338.

The result has disappointed analysts who were hoping to see a spring and summer recovery in new mortgage lending from the slump that followed the end of the stamp duty holiday.

The number of people remortgaging their properties also fell in May, to 25,759, with homeowners coming to the end of fixed-rate deals continuing to revert to lenders’ relatively attractive standard variable rates.

In other housing market news, Taylor Wimpey has reported that it expects the underlying shortfall of new build housing and strong levels of demand to continue to underpin UK house prices.

The developer has also warned that a shortage of building land will “artificially constrain” the recovery in new house building, in the medium term.

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