Mortgage lending ' to remain depressed'

The level of mortgage lending in the UK is not about to recover, the Royal Institution of Chartered Surveyors (Rics) has forecast.

New figures from the British Bankers' Association (BBA) have shown a rise in volume of £5.6 billion in February, above both the January figure of £5 billion and the six-monthly average of £5.1 billion.

However, suggested Rics chief economist Simon Rubinsohn, this was a situation that was unlikely to persist.

He said: "Buyer enquiries (according to the latest Rics survey) have slipped back to the lows seen in the wake of the Northern Rock crisis and this trend is likely to persist through the spring."

Mr Rubinsohn stated the supply of mortgagefinance was still restricted by high interbank lending rates.

Earlier this week Bank of England governor Mervyn King told a committee of MPs in Westminster that it would add further liquidity to the market in a bid to boost flagging confidence.

Those unable to find the right mortgage deal in the current climate may consider the alternative of self build to obtain a home.


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