Peter Rollings commenting on the lending figures from the CML and the budget announcement
Lending: "We’re definitely seeing a marked upswing in the number of people committed to moving house or buying their first home. But even though gross lending saw a month on month rise, the March volume is still just half of that seen this time last year. Despite the obvious economic pressures, the time is ripe for a genuine pick up in transactions. House prices won’t start to rise for a good while yet, but they’ve hit the bottom of the curve. If you have a deposit, now is a great time to invest in property."
Budget: "A stamp duty holiday until the end of 2009 isn’t going to boost the market – the dwindling number of mortgage approvals over the past year is proof that it didn’t make a difference in September when it was first introduced. The government needs to think long term – sticking plaster over sticking plaster isn’t going to heal a wound that needs stitches.
"Crucially, demand for mortgages is there – it’s full to bursting. The banks just haven’t been able to lend. The government guarantees for new mortgage backed securities should offer lenders new finance to fund new lending to take the cap off pent up demand."
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