House purchase lending rose “modestly” by 2% in volume in May, the latest data from the Council of Mortgage Lenders has revealed.
In May, CML recorded 42,000 loans worth £6 billion, rising 3% in value. It also noted that for the first time in 35 years, borrowers moving home saw their mortgage interest payments accounting for the lowest proportion of their income. House purchase lending also rose from a year ago for the 11th consecutive month.
But CML warned: “With the challenging economic backdrop, government spending cuts and forthcoming tax increases, the positive trend is likely to tail off in the second half of this year.”
Director general Michael Coogan added: “House purchase lending continues its recovery but positive comparisons with equivalent months a year ago look unlikely to continue, with the government’s austerity drive picking up momentum.”
Source: Housebuilder
See Also: Property News (6701), Housebuilder (84), Council of Mortgage Lenders (14), CML (4)
Date Published: 13 July 2010
Related News
