The latest BoE credit conditions survey showed that household and commercial demand for mortgages and other secured credit has weakened in Q2.
Lenders were reportedly disappointed not to see greater demand from borrowers over the last three months after the Stamp Duty threshold was lifted to £250,000 and the cold weather ended.
Alison Rolls, spokesperson from Norwich & Peterborough, said: “The uncertainty caused by an election, has played a huge part here, so its hardly surprising people have been put off major financial commitments.”
However, there was a surprise drop in the number of borrowers falling into arrears in Q2.
Simon Rubinsohn, chief economist, RICS, said: “The likelihood is that the finance for the property market will continue to be in short supply for some time to come.”
