Is the Increase in Mortgage Lending Enough

Last month even though mortgage lending showed a marked improvement, it is still lower than what it was a year ago, as revealed by the Council of Mortgage Lenders. In October, mortgage lending increased by 6.9 per cent to £18.7 billion while in September it was 17.5 billion. It was the first substantial increase since the month of July and the largest since April. However, lending was still at an abysmal low from £33.3 billion of the same month last year.

It can be said that there is some silver lining in the housing market though at a low credit condition. The housing market is stretched for a number of reasons including the deep economic crisis.

The people are playing the wait and watch game and restraining from buying houses and are hoping that prices will take a long time to fall. The deepening economic situation and shortage of funding will see very little activity in the housing market.

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