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Lending will fall this year – panel

by: Adam Williams
  • 23/05/2012
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Panelists at the Mortgage Business Expo in Manchester were in agreement about the level of UK lending in 2012, with all predicting a lower level than 2011.

Speaking in Manchester, James Chidgey, senior manager of corporate accounts at Nationwide said that he expected this year’s totals to fall short of those achieved in 2011.

“I think it has been less than last year’s total of 140bn. The hotspot has been buy-to-let but gross lending will be somewhere around 130bn.

“The big six are planning to lend around 105bn with 25bn coming from other lenders that will get us in the region of 130-135bn. But the best part of the year will be the first six months.”

Mark Snape, secured sales director at GE Money agreed, adding that a summer of events could also contribute to a slowing in the market over the coming months.

“We had a good first quarter thanks to the Stamp Duty holiday but we need to see the effect of the Olympics, European Championships and Queen’s Jubilee over the summer where lending should peter out. 2013 should be much the same as 2012.

Sarah Green, head of national accounts at Barclays, was more positive about the situation: “The start of the year was a good opportunity and we’ve come through a lot already. If we compare with 2008 we are doing better, so if we remain positive we could look to reach 135bn rather than 130bn.

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