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Growth in home loans continues

Although the increase in house prices within London may slow next year, mortgage lending in the UK has still been on the rise.

Statistics collected by the Bank of England have shown a resurgence in mortgage approvals after a period in which they had dipped. This revival has occurred despite the introduction of new regulations, which could have constrained the activity of first-time buyers. The policy, called the Mortgage Market Review (MMR), does not seem to have had a drastic influence on behaviour.

Recent figures have shown that the level of lending to people who are already on the housing ladder has been getting steadily higher. In June, mortgage lending of this type was over 10 per cent higher than it had been one year previously. The possible disruption that MMR could have caused does not appear to have been of great importance, although precisely what will happen next year is hard to tell, according to observers.

The evidence available underlines the fact that geographical variations still impact significantly on the UK housing market. Nevertheless, the overall strength of mortgage lending should mean that the demand for carpet cleaning in North Wales remains high, as borrowers look to improve the properties they move into. Additionally, people who are wishing to sell property will want to ensure that it is in an excellent condition when potential purchasers are visiting.

Matthew Pointon, a property expert who works for Capital Economics, has told the Financial Times:

“Robust economic and employment growth will help the mortgage market recovery to continue. But while the MMR will not put a brake on lending, it should help ensure that the growth in lending slows to a more sustainable pace.”

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