March Property Lending Figures Released

The rate of the recovery appears to have stalled according to figures released by the Bank of England for March 2010.

The net lending secured on dwellings increased by £0.3 billion, well below the February increase of £1.8 billion and the previous six-month average of £1.5 billion.  The twelve-month growth rate was unchanged, at 1.0%.

The number of loan approvals for house purchase (48,901) was slightly higher than the February figure (46,882) but below the previous six-month average (54,201).

Approvals for remortgaging (27,880) were higher than in February and also higher than the previous six-month average (25,853), while approvals for other purposes (25,484) were slightly higher than in February but just below the previous six-month average of 26,696.

These figures indicate that there was a lowering in the amount borrowed per transaction but only a marginal decrease in the number of transactions.  Many experts believe this slight slowdown in the rate of recovery is as a direct result of people waiting until the General Election is over before making any commitments.

Source: (05/05/10)