More loans available for UK property buyers

Published by Property Community on Thursday, 21 July 2011 by Ray Clancy
More mortgages are being granted for buyers in the UK residential property market but experts are divided over whether this is a blip or the start of the road to recovery.

The latest figures from the Council of Mortgage Lenders show that gross mortgage lending totaled an estimated £12.6 billion in June, a 16% increase from the £10.8 billion lent in May. However, it was 3% lower than June 2010.

CML chief economist Bob Pannell said that it is disappointing economic growth, strong consumer price pressures, falling disposable incomes and an uncertain jobs market that is preventing people from buying property.

‘This backdrop weighs negatively on purchase decisions relating to home ownership. By contrast, landlord activity appears to have picked up recently and, with evidence of strong rental demand, this should help to underpin activity over the coming months,’ he said.

Paul Hunt, managing director of Phoebus Software said …

Tags: disposable incomes, home ownership, lender, mortgege, mortgege lender, proerty, rental demand, UK residentials

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