Slow recovery to blame for low mortgage lending

Date:Friday 26th February 2010
Author: Max Freedman

The slow increase in the housing market has been blamed on the low amount that is being handed over in mortgages by Redrow.

Steve Morgan, the chairman of the housing company, told the Independent that he thinks there is little chance of the housing market making any recovery while the banks are still reluctant to offer people loans.

He added that this reluctance to help first and second-time buyers to purchase new properties was having the knock-on effect of potentially making the government miss its target for building three million properties by 2020.

"The chronic shortage of mortgages means that this industry doesn't have a great hope of making inroads into this country's chronic housing shortfall," he said.

His comments come as the British Bankers' Association announced that the number of mortgages given out in January was down on those loans approved in December, which it blames in part to the end of the stamp duty holiday.