NAEA: Responsible mortgage lending is the answer

Date:Friday 21st August 2009
Author: Susanna Kavka

Responsible mortgage lending is the way for the housing market to recover, according to the National Association of Estate Agents (NAEA).

Peter Bolton King, chief executive of the NAEA, commented that he felt the industry may have "hit rock bottom" and could be on the way up again.

But he suggested the only way that a real recovery could be sustained would be for banks to take a responsible approach to mortgage lending.

"We would call on the banks to do all they can to ensure that responsible people are given access to responsible lending," he said.

Mr Bolton King made his observations after the Council of Mortgage Lenders (CML) announced that there had been a 26 per cent increase in lending from June to July.

The gross mortgage lending figure for July was estimated at £16 billion by the CML, compared to £12.7 billion in June; however, it pointed out that summer is typically a strong period for growth.