This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7772873.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Lenders slam government policies | Lenders slam government policies |
(30 minutes later) | |
The government's priorities for lenders are "conflicting and incoherent", a banking group has said. | The government's priorities for lenders are "conflicting and incoherent", a banking group has said. |
Michael Coogan, of the Council of Mortgage Lenders (CML), said mortgage providers were caught in a "tug of war" between boosting loans and stability. | Michael Coogan, of the Council of Mortgage Lenders (CML), said mortgage providers were caught in a "tug of war" between boosting loans and stability. |
His comments came as the CML said home loan lending had risen 14% in October compared with the previous month. | His comments came as the CML said home loan lending had risen 14% in October compared with the previous month. |
In a separate survey, the government's own figures showed property prices dipped by 2.5% in the same month. | |
Criticism | Criticism |
Mr Coogan said lenders were facing a range of conflicting pressures. These included protecting themselves against future losses, passing on rate cuts to borrowers, and keeping savings rates high. | Mr Coogan said lenders were facing a range of conflicting pressures. These included protecting themselves against future losses, passing on rate cuts to borrowers, and keeping savings rates high. |
The tug of war with lenders being pulled in every direction at once needs to end Michael CooganCouncil of Mortgage Lenders Northern Rock snubs government class="" href="/1/hi/business/7771118.stm">House sales 'are still falling' | |
They also had to assist those facing arrears on their mortgage repayments, as well as helping to maintain economic activity during a downturn. | They also had to assist those facing arrears on their mortgage repayments, as well as helping to maintain economic activity during a downturn. |
He was deeply critical of the government for their failure to pick which of these was the most important. | He was deeply critical of the government for their failure to pick which of these was the most important. |
"Current policy objectives are conflicting and incoherent. The government needs to decide on its key priority," the CML's director general said. | "Current policy objectives are conflicting and incoherent. The government needs to decide on its key priority," the CML's director general said. |
"The tug of war with lenders being pulled in every direction at once needs to end." | "The tug of war with lenders being pulled in every direction at once needs to end." |
Slight upturn | Slight upturn |
The CML's figures show that the total value of loans granted for house purchases in October was up 10% on September to £5.5bn. This was 57% lower in value than a year ago. | The CML's figures show that the total value of loans granted for house purchases in October was up 10% on September to £5.5bn. This was 57% lower in value than a year ago. |
If you can take anything positive from the latest depressing house price figures, it's that we're getting closer to the bottom David Smith, Dreweatt Neate estate agents | |
The number of loans granted for house purchases in the UK rose to 39,900, but this was still down 52% on a year ago. | |
With house prices falling, first-time buyers are not having to borrow as much they did a year ago. | With house prices falling, first-time buyers are not having to borrow as much they did a year ago. |
But with banks and building societies keen to lend to "secure" borrowers, first-time buyers are having to find a bigger proportion of the loan as a deposit. | But with banks and building societies keen to lend to "secure" borrowers, first-time buyers are having to find a bigger proportion of the loan as a deposit. |
The average deposit of 17% is the highest since 1979, the figures show. | The average deposit of 17% is the highest since 1979, the figures show. |
Falling prices | Falling prices |
The figures were published at the same time as the government's own housing statistics showed that UK property prices in October were 7.4% lower than a year ago. | The figures were published at the same time as the government's own housing statistics showed that UK property prices in October were 7.4% lower than a year ago. |
Buyers are having to find a large deposit to secure a mortgage | Buyers are having to find a large deposit to secure a mortgage |
That pushed the average UK house price down to £203,539, the Department of Communities and Local Government (DCLG) said. | That pushed the average UK house price down to £203,539, the Department of Communities and Local Government (DCLG) said. |
Annual average house prices fell by 7.3% in England, 7.8% in Wales, 4.5% in Scotland, and 20.5% in Northern Ireland. | Annual average house prices fell by 7.3% in England, 7.8% in Wales, 4.5% in Scotland, and 20.5% in Northern Ireland. |
The regional breakdown shows that house prices have fallen the most in the East Midlands and the South West (down 9.5%), but dropped the least in the North West (5.6%). | The regional breakdown shows that house prices have fallen the most in the East Midlands and the South West (down 9.5%), but dropped the least in the North West (5.6%). |
The highest average house price is in London (£318,831), and the lowest in the North East (£138,575) - a difference of £180,256 between the two. | |
Earlier on Tuesday, the Royal Institution of Chartered Surveyors said property prices fell further in November, although interest was rising among potential buyers. | |
David Smith, senior partner at Dreweatt Neate estate agents, said: "If you can take anything positive from the latest depressing house price figures, it's that we're getting closer to the bottom. | |
"Prices now look attractive but there is a lot of uncertainty." | |
Meanwhile, the government's Lending Panel meets for the first time on Tuesday. | Meanwhile, the government's Lending Panel meets for the first time on Tuesday. |
The group, unveiled in the pre-Budget report, is made up of representatives from banks, the Bank of England and debt advisers, and is set to discuss the squeeze on mortgage lending. |