|
 Building societies have reported staggering reductions in lending over the month of May, it has been reported.
The latest Building Societies Association (BSA) statistics show that lending across building societies dropped by 90 per cent, sitting now at just £125 million, down from the £1,262 million lent the previous May.
And lending for mortgages has taken a large hit, as they stood at just 55 per cent of the previous May's figures of £4,264 million.
"The lending figures reflect the depressed state of the housing market," said Adrian Coles, director general of the BSA.
"With 74 per cent of respondents to the BSA's property price tracker survey expecting property prices to fall over the next year, it is no surprise that demand for new mortgages remains low."
House prices have been falling for three consecutive months now, and analysts predict the worst is yet to come, as interest rates show no sign of easing the income of stretched households.
Latest reports also detail the fall of asking prices, as sellers are coming round to the notion that house prices are in decline, with some soon to be lower than the price they were bought at.
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
