In today’s market commentary, CML chief economist Bob Pannell observes:
"The underlying picture in the housing and mortgage markets has not changed dramatically over recent weeks.
"The immediate direction of house purchase activity is a little unclear, although the story for remortgages, with strong year-on-year increases in activity this year, is for the time being more straightforward.
"With the government's housing strategy and autumn statement due shortly, the housing market, with subdued levels of new build and demand, offers a tried and tested means of providing a timely stimulus to the wider economy."
Richard Sexton, director of e.surv chartered surveyors, said:
“The year-on-year stats don’t reflect the state of lending accurately. 2010 is such a weak comparator, and inflation is at record highs.
"The truth is the mortgage market is fighting an uphill battle. Insipid economic growth, and restricted supply of credit, are sapping the life from the market and forcing banks to target wealthier borrowers and professional buy-to-let investors.
"They are in no position to increase their lending. Overall lending conditions were at their tightest since February in October. A meagre 1 in every 100 loans were to borrowers with a deposit of 10% or under, compared to13 in every 100 in 2007.
"Unless the economic gets moving, and the crisis wreaking havoc in the eurozone dissipates, there is a very real chance the first time buyer market will enter a state of near paralysis.”
