Mortgage lending recovery 'will take time'
Mortgage lending will recover eventually, but it is likely to remain at its current levels of decline for some months to come, one sector commentator has asserted.
Timothy Lambert, head of consulting at Ducalian, said there is currently uncertainty in the market for a number of reasons, as following the worst recession in years, mortgage lenders have obligations to provide finance but are being more careful about who they give it to.
"While the economy is showing growth, it is very fragile still and will take time for confidence to return to lenders, despite pressure being put on them by the government," he added.
Another reason which may be slowing housing recovery is the amount buyers are now expected to raise for a deposit, coupled with the high price of property, particularly in London.
Mr Lambert notes in the capital one bedroom apartments can sell for around £250,000 - ten times more than the average incomes of young professionals which stand at £25,000.
In light of this, such people may wish to consider flats to rent in Shoreditch or another part of the city as a more affordable option.
According to the Council of Mortgage Lenders, gross mortgage lending declined to an estimated £9.1 billion in January.
Written by Andy Britten
Published 19th February, 2010
© 2010 Estates IT Limited
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It is likely to take some time for the mortgage market to recover from the property slump, it is claimed - and until it does Britons may wish to consider flats to rent in London.