News»Press» Peter Rollings commenting in response to the latest CML figures
Peter Rollings commenting in response to the latest CML figures
Tuesday, 14 June 2011
"CML’s statistics may paint a rosier picture on first glance, with a monthly increase in lending. But on closer inspection, it’s clear the mortgage market remains largely subdued. Despite the mini-bounceback, lending for house purchase was actually 2% lower than a year ago and it remains the main stumbling block for reigniting the housing market recovery outside London. Underlying demand from would-be buyers is being thwarted by lenders’ enormous deposit requirements, and this is reining in the number of people moving each month. But the picture is somewhat different in the Capital, where there are a much greater number of cash investors and buyers with large deposits. Housing market activity in London has outperformed the rest of the country by a distance, and is especially vibrant in prime areas like Kensington and Chelsea. However, it is crucial that it is not just left to London to provide growth in activity. For this trend to spread outside of the capital, lenders must up their commitment to help the lower end of the market."
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