UNITED KINGDOM - The process of property market weakening has been recently observed due to declining mortgage lending for the last two months in a row in the UK. This brought real housing prices fear to many of the lenders. The recession has been caused by the weakening lending level for home buyers, while the number of mortgages themselves has dipped to 99’000 comparing to 110’000 in August. According to the UK’s Council of Mortgage Lenders, the gross mortgage lending fell by around a billion pounds (about $1.8 billion) last month.
Notwithstanding the received data, the British Bankers’ Association reported ₤1 billion ($1.8 billion) growth, as the figures had been skewed by accounting changes at one lender, the Times said Wednesday. The BBA promised to release more detailed data on mortgage lending next week.
In any case, the property market slowdown is evident; and its extent is the largest over the last 9 years, the Royal Institution of Chartered Surveyors believes.
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