Peter Rollings commenting in response to the latest CML figures
Fri 13 May 2011
"The bounceback of lending will be warmly welcomed by first-time buyers, who have been hit hardest of all by the ongoing squeeze on mortgage finance. But lending is still a country mile from where it needs to be to re-ignite the housing market recovery outside of London, and it is crucial for the nationwide housing market that this pick-up is not another false dawn. Underlying demand from the thousands of would-be buyers is being frustrated by the colossal deposits requirement, and this continues to takes its toll on the number of people moving each month. The picture in London is somewhat different. With a much higher number of cash investors and buyers with sizeable deposits, housing market activity has been far more robust in spring, and especially vibrant in prime areas. With the Royal wedding serving as spectacular advertisement for the city of London, and the Citys economy reviving, activity in London will continue to improve. However, we cant just rely on London to provide growth in activity. For this trend to spread outside of the capital, its vital that lenders pull out the stops to help the lower end of the market."