Prompted by the BoE’s lending figures, the CML’s director general Michael Coogan said the 2010 mortgage approvals have forced the CML to review its forecast and offer another prediction in the Summer.
“So far this year, house purchase activity has been lower than in the last half of 2009, although this reflects the Stamp Duty holiday, which boosted activity towards the end of last year and caused the quiet start to 2010,” said Coogan.
Lower interest rates have flattened the remortgage market, he added, which has also affected the lending figures.
The mortgage market may be constrained, but the number of homeowners trying to sell their properties in May jumped 89.4% in one month to its highest level in more than two years, according to Agency Express.
Stephen Watson, managing director of Agency Express, said the Government’s decision to abolish Home Information Packs (HIPs) had encouraged people to offer their properties for sale.
He added: “The good weather in May also helped to increase sales activity to levels which we have not seen consistently for over two years. The scale of activity around the country augurs well for the next few months.”
