Peter Rollings commenting in response to the latest CML figures
Tuesday, 20 September 2011
"Any talk of a sustained recovery in the mortgage market would be premature, but there are certainly signs of life. August's level of lending more than made up for a subdued July, and lending is at its highest in more than two years as buyers return to the market after their summer hiatus. For many, it's an excellent time to buy, and thousands of homebuyers are looking to capitalise on the historically cheap mortgage rates available for those with decent deposits - at a time when house prices outside London remain well below their previous peaks. As a result, there is a strong imbalance between the number of buyers looking to move, and the number of properties for sale. In prime areas of the capital, the situation is even more acute. Cash buyer demand has been supplemented by equity-rich voluntary borrowers, cashing in on cheaper mortgage finance to top up their buying budgets. We are now seeing over 17 buyers registering per property in parts of London, and the resultant competition is driving sales prices beyond asking prices in many cases. But if more vendors look to take advantage of improving buyer demand, and a greater supply of homes hit the market, we may see a welcome boost to sales activity outside of London."
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