Mortgage Advice Bureau comments on today’s CML and RICS mortgage and housing market data

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments on the CML Monthly Lending Trends (August) and RICS Residential Market Survey (September):

“The brakes are starting to be applied to what once seemed a rocketing housing market, with both house price growth and mortgage lending easing in recent months. The stricter lending criteria introduced by the Mortgage Market Review (MMR) has resulted in a slight dampening of demand, ushering in a more relaxed pace of purchase applications and reduced house price growth.”

“Housing activity in London has finally come off the boil, with the near four year spell of consistent house price rises being broken in most areas. This is welcome news for consumers in the capital, who have been struggling to save for a deposit against a backdrop of sky-high prices and spiralling rents. While the broader picture for the UK shows house prices and mortgage lending are still up on last year, a more moderated market will provide some much-needed relief for many first-time buyers struggling to afford a home.”

“Although the market appears to be easing, lenders must remain dedicated to their participation in government schemes such as Help to Buy and higher loan-to-value lending. Crucially, the ongoing imbalance between housing supply and demand must also be addressed if we are to help suitable borrowers get a foot on the property ladder.”