Mortgages ‘still limiting housing market’

The mortgage sector is still constraining the housing market, despite reports of property price increases last month.

This is the opinion of Savills residential research director Lucian Cook, who stated that the rises are probably due to the depletion of available housing stock and, while the 1.2 per cent growth reported by Nationwide is encouraging, it does not mean that the market is fully healthy again

“We have seen a substantial shift in [the thoughts] of homebuyers, but the limitation is the number of people who are able to access the mortgage market and take advantage,” he remarked.

Net mortgage lending by UK banks in April was recorded at £2.7 billion by the British Bankers’ Association.

This figure is £700 million less than the one measured the previous year, but the number of approvals was up compared to March 2009 by 3.8 per cent to 27,685.

Meanwhile, remortgages fell by 4.6 per cent compared to March and 63 per cent compared to April 2008.

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