Funding for Lending fails to help brokers provide more
19th Oct 2012
The government's new Funding for Lending scheme, designed to bring about a greater activity in the UK property sector as well as other financial sectors has failed to boost mortgage lending, after new figures showed gross values had decreased.
According to the latest figures from the Council of Mortgage Lenders (CML), there has been a fall in lending this September, with ten per cent fewer being approved by banks and other brokers when compared to August.
However, despite the fact that this fell to a total of £11.4 billion in September, the organisation reported that quarter three's gross lending value sat at £37.3 billion, a growth of eight per cent when compared to the three-month period prior.
It was still five per cent lower, though, than the same quarter in 2011, with much of the blame for the drop in applications lying in the fact the Olympics in London distracted the majority of buyers.
This summer was a particularly busy summer for potential purchasers, with the Queen's diamond jubilee and Euro 2012 also likely to have distracted many from their normal way of life.
"There have been hints of demand softening over recent months, but monthly patterns may have been distorted by the Olympics. House purchase demand failed to lift significantly in the third quarter, despite much better mortgage availability," said CML chief economist Bob Pannell.
Posted by Staff Writer: Frances McDonald
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