CML gross lending figures truly dire 20.10.2010

Author: David Whittaker Posted on: 20 October 2010

According to the CML, gross mortgage lending totalled an estimated £12 billion last month, the lowest September total since 2000.These figures are truly dire and a reflection of the caution felt ahead of today’s spending review.

The CML must now bite the bullet and admit that gross lending for the year is likely to be £125 Bn. There is no point in continuing to skirt the issue. It’s been encouraging to see some lenders re-entering the market, but so much more needs to be done if the industry is to return to any semblance of health. The government has to take responsibility, it’s about to flood the rental market having cut social housing so it needs to encourage lenders and landlords to increase activity.

With lending now as low as in 2000 and house prices around double the value, it doesn’t take a Nobel mathematician to work out that we can’t continue like this.