Friday, August 10, 2012

UK mortgage market still sluggish

UK mortgages continued to moderate due to the poor economic outlook as a result of the Eurozone debt crisis, according to the recent Housing Market Activity Report
by Connells Survey & Valuation.
In July, the total number of residential valuations grew by eight percent over the last year, while valuations fell by 13 percent month-on-month.

“The UK’s mortgage market continues to feel the effects of the financial crisis across the channel and the on-going economic recession,” said John Bagshaw, Corporate Services Director at Connells Survey & Valuation.

“Nevertheless, the launch of the Funding for Lending scheme could well breathe new life into the housing market as the year progresses. If lenders grasp the opportunity for cheap finance with both hands, and pass this onto new buyers, we should see the housing market take a step towards recovery,” he added.

Moreover, the ‘buy to let’ segment was the only market sector that did not contract in July. This segment comprised 14 percent of Connells’ valuations, a 12 percent increase from the previous month.

View the original article here

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