Peter Rollings commenting in response to the latest CML figures
Wednesday, 20 July 2011
"The CML’s latest mortgage figures paint a rosier portrait for the thousands of frustrated first-time buyers. Lending has been particularly depressed in the last year, but in recent months there have been signs of a bounceback and an increasing number of mortgage products have hit the market aimed at buyers with smaller deposits. However despite the recent pick-up, we must remember that lending is only a third of its level four years ago, and the actual sum of money banks and building societies are committing to first-time buyers remains inadequate to stop the housing market from stagnating outside of London.
The capital’s housing market tells a completely different tale. In spite of an adverse mortgage market, buyer demand is going from strength to strength. A robust bonus season in the City has bolstered the number of cash buyers looking to invest in bricks and mortar, and London continues to draw international investors. In fact, it is a lack of stock – rather than buyers - that is the key factor in the market, driving up competition per property and sale prices throughout prime areas of London."
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