Total mortgage lending fell for the second month in a row in August, with analysts claiming that another fall in house prices could be around the corner.
The Council of Mortgage Lenders (CML) said that the number of homes sold in the UK also fell last month, by 5,000 to 85,000, whilst property groups have claimed that typical asking prices have fallen by an average of around £8,000 as a large number of returning sellers are met with a small number of potential buyers.
“We face the prospect of a difficult second half of the year,” said the CML’s chief economist Bob Pannell.
“However, the Bank of England is likely to keep interest rates at record lows for longer to support the economy. This will continue to alleviate payment pressures for many borrowers,” he added.
Last week, the Royal Institution of Chartered Surveyors (Rics) said the market continued to be affected by a combination of more sellers returning to the market but fewer would-be buyers, suggesting that prices were likely to fall in the coming months.
Similar Posts:
- Why You Should Consider a VA Home Mortgage Loan
- Mortgage rates edge up, end year near all-time lows
- CML Reports Stagnating Mortgage Market
- Insolvencies Drop For First Time Since 2007
- Interest rates remain at 0.5%
