Tighter mortgage lending
standards look set to stay
Gross mortgage lending totalled an estimated £24.8 billion in July, up 5 percent from June and down 27 percent from July a year ago, according to the Council of Mortgage Lenders (CML).
Bob Pannell, CML head of research, said: “While there was a small month-on-month increase in activity, it represented a notable decline from a year ago. This continues the weaker picture seen in June and points towards the more subdued levels of lending we are likely to see in the second half of 2008.”
Commenting on CML gross mortgage lending data, Oliver Gilmartin, RICS senior economist said: “The recent improvement in the monthly gross lending could offer some encouragement in what are typically slower summer months.
“Lending still remains 27 percent down on a year ago levels and access to mortgages remains challenging.
While banks are still in the process of repairing their balance sheets and as the securitisation markets remain effectively closed, mortgage lending is unlikely to recover in any meaningful way.
Even though the base rate has come down by 0.75 percent since August 2007, those without higher deposits have seen little benefit with many first time buyers effectively shut out of the market.
“Despite the prospect of further interest rate cuts as the economy slows sharply into 2009, tighter lending standards look set to stay."
Cumbria holds first ever open day for landlords
Cumbria’s first ever Landlord Open Day will be held on Monday, 8 September and Carlisle City Council is inviting all existing and prospective landlords, plus local businesses, to come forward and be part of the event.
It is being held in the Carlisle Civic Centre, between 12.30pm and 6pm, and will provide an opportunity for local landlords to visit a range of exhibits and trade stands, find out about new legislative updates and listen to guest speakers.
Invitations to around 200 privately owned and social landlords have been sent out and 18 exhibitors, including local emergency services, health & safety experts, finance representatives, energy assessors and legal advisors, have already signed up to the event.
Cllr Olwyn Luckley, Portfolio holder for Health and Wellbeing, said: “As part of the Landlords’ Forum, we try and provide as much support and advice as we can to local landlords. We want tenants to live in safe accommodation and we work alongside landlords to ensure that they are aware of changes in the law and that their properties comply with health and safety regulations.
“The Landlord Open Day will be the first of its kind in Cumbria and will be an opportunity to find out what advice and services are available within our area. We still have a small number of trade stands available and we urge potential exhibitors to contact us if they want to be part of the event.”
For further information about the Landlord Open Day telephone 01228 817320.
Petition asks prime minister
to abolish buy to let mortgages
An invitation to join a petition which calls on the Prime Minister to abolish buy to let mortgages has appeared on the number10.gov.uk website.
Paul Smith, who created the petition on the official site of the Prime Minister’s office, has attracted the support of 14 other people.
His petition says: “I, as a potential first time buyer, find that affordable housing, i.e. one and two bedroom flats/houses are bought by more established home owners as a source of extra income.
“I propose the Prime Minister should abolish the Buy to let mortgage option so that houses that first time buyers would normally be buying are not bought as a source of income for richer people as a source of income, to be letter out to the possible first time buyer.”
There is a closing date of 30 October 2008 on the petition.
