Buy-to-let lending continues to increase after a severe decline in the first half of 2009, new figures show.
While new lending rose for the second consecutive quarter in the last three months of 2009 – with 25,800 new loans in Q4 compared to Q3’s 23,700. These figures are well below thw historical average level and still very low.
Michael Coogan, director general of the Council of Mortgage Lenders (CML), which produced the figures, said this was ‘below the level of activity which is needed to enhance a vibrant private rental sector in the UK’.
The BBC reported today that ‘The number of people who had their homes repossessed reached a 14-year high during 2009, figures have shown.’
The Council of Mortgage Lenders (CML) said 46,000 homes were repossessed last year, the highest number since 1995. That was an increase of 6,000 on the total for 2008, but was lower than the CML’s most recent forecast of 48,000. In December 2008 the CML had predicted 75,000 homes would be repossessed in 2009.
Lenders took 10,200 properties into possession in the fourth quarter of 2009 - 13% lower than in the third quarter. That was also a drop of 2% on the last three months of 2008.
Last year’s 46,000 repossessions were just 61% of the total recorded in the peak year of 1991, when lenders seized 75,500 homes.
The Times reported that ‘Sterling fell sharply against the dollar and the euro as the Bank of England hinted that it could pump billions more into the economy via quantitative easing. The Bank’s Monetary Policy Committee (MPC) voted to halt quantitative easing this month, but Mervyn King, the Bank Governor, said that it was “too soon” to say that no more asset purchases would be needed.’
‘The Bank also struck a downbeat note on the economy’s outlook in its Quarterly Inflation Report, revising down its growth forecasts for this year. Mr King refused to rule out a double-dip recession, saying that a quarter of negative growth was possible, but he added that it was just as likely that the economy could have four quarters of “rapid” growth.’
See http://business.timesonline.co.uk/tol/business/economics/article7022632.ece#cid=OTC-RSS&attr=1185799 for the full story