Home
Investment
News & Views
Company News
news storage
Mortgage lending halves in January
Wed, 08 Feb, 2012
INVESTMENT NEWS
Company Search
Search QCK.COM
Investment Home
News & Views
Top Stories
Charting
Company Search
Watchlist
Market Reports
Market Buzz
Company News
Economic News
New Issues
Other News
Mortgage lending halves in January
Fri, 12 Mar 2010, 12:10:00
Further evidence that housing activity suffered a dramatic downturn at the start of this year emerged today, with the weather and cut in the stamp duty threshold to blame. The number of house purchase loans was 49% lower in January than in December at just 32,000, although that was up sharply from the 23,000 approved a year earlier. Alistair Darling's decision to return the threshold for stamp duty on house purchases back to £125,000 from £175,000 at the start of 2010 forced many to bring forward their plans. This was highlighted by a 54% plunge in the number of first-time buyers, the category most likely to be buying properties worth £125,000-£175,000, down to 11,300. First-time buyer numbers soared 63% in December, but tumbled by 80% a month later, accounting for just 19% of all first-time buyer loans versus December's record 42%. "We had predicted this would happen due to the end of the stamp duty holiday distorting December's figures," said CML director general Michael Coogan. "When December and January data are taken together, they show little change in underlying market conditions compared with recent months, with activity still slow but well up on the lows of a year earlier." Coogan expects lending to remain weak over the coming months as uncertainty over the state of the economy and the upcoming election continue to hold back housing market activity.
©2004-2009 QCK.com
