Rics: Mortgage providers increasing activity

Date:Monday 26th October 2009
Author: Max Freedman

Lending activity on the part of mortgage providers appears to be improving, one industry expert has said, in response to the latest figures from the British Bankers' Association (BBA), which were released on Friday.

Simon Rubinsohn, chief economist with the Royal Institution of Chartered Surveyors (Rics), observed that, irrespective of the "hugely disappointing" third-quarter gross domestic product data set out on October 23rd, the fact that mortgages for house purchases peaked over 42,000 for September "is indicative of a slight thaw" in lending activity.

However, he added that the incidence of remortgages is still weak and first-time buyers will struggle as considerable deposits are required in order to get on the property ladder.

Mr Rubinsohn went on to predict an increase in house prices as a result of the "pick up in demand" and "a continuing lack of new instructions".

His comments follow statistics from the BBA, which revealed that the number of homeowner loans has climbed back to mirror levels last seen in 2007.