Commenting on market conditions in this month's market commentary, CML senior economist Mohammad Jamei said:
"Mortgage lending is holding up well, but under the surface buyers face mixed fortunes. First-time buyers and customers who are remortgaging are driving total lending, while home movers and buy-to-let remain weak.
"The weakness in home movers means few properties are coming onto the market for sale, which is aggravating a supply demand imbalance that has characterised the market since late 2013. This looks set to continue at least over the next few months, posing an obstacle for would-be borrowers."
Jeremy Duncombe, Director, Legal & General Mortgage Club, comments:
“Lending volumes in the mortgage market can and do fluctuate from time to time. Today’s figures show a dip in monthly gross lending but it is no immediate cause for concern and shouldn’t distract from the bigger picture - which is that transaction volumes are an issue, stamp duty is deterring movers and supply is limited.
“The recent Housing White Paper gave some direction in terms of how Government plans to start tackling our nation’s chronic shortage of affordable homes. However, there are huge challenges facing both Government, industry and local authorities which must be overcome before we can see a welcome return to a healthy and stable housing market."
