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Mortgage lending dives as demand for houses slows
Business digest: Government cuts and cold weather leave buyers ‘wary’ of property market
Mortgage lending slumped a sudden 29 per cent in January due to "extreme cold weather" and falling consumer confidence.
The Council of Mortgage Lenders (CML) said that a freezing winter had kept potential buyers at bay. Government cuts, rising inflation and the VAT rise had also hit buyers hard, leaving them increasingly "wary of entering the property market".
Figures for the month were also 12 per cent lower than in January 2010 as first-time buyers took out only 10,500 loans worth £1.2bn.
Michael Coogan, director general of the CML, was remaining calm, however: "It would be premature to draw any firm conclusions about activity levels over the next few months. The market remains stable at low levels of transactions."
Read the full story at This Is Money. ·
