LONDON: Underlying mortgage lending rose to 5 billion pounds in September, compared with 4.4 billion pounds in August, according to the British Bankers' Association (BBA), clearly indicating that the property markets in Britain are on way to stabilisation.
This figure represented the highest amount since December 2004. Analysts, relating the increase to the August cut in bank interest rates, said it did not, however, indicate a major revival. It adds to the evidence that housing market is strengthening, they feel.
BBA, however, said credit card lending has increased by 100 million pounds, which is a reflection of the sluggish overall spending.
A parallel study by the Building Societies Association showed that the value of mortgage approvals fell to 3.8 billion pounds in September from just under 4 billion in August. But the figure is almost 40 per cent higher than the 2.7 billion pounds a year ago.
In yet another study, the Council of Mortgage Lenders said gross mortgage lending rose to 28.1 billion pounds in September from 26.9 billion pounds in August to reach its highest level since July 2004. The council said there is a steady recovery in mortgage lending and the housing market is on course for recovery.
Early this week, the Royal Institution of Chartered Surveyors had said house prices are about to rise for the first time in 18 months, after its members reported rising demand from house buyers.
Posted
on : Thu, 20 Oct 2005 19:20 GMT | Mortgages News
By : Rob Davis
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