Although the negative news coming out of the Eurozone and Europe is impacting on the housing market, the recent figures from the Council of Mortgage Lenders show an increase in lending.
Octobers grow mortgage lending was estimated to be £13.1 billion, a 13% increase year-on-year from October 2010.
But behind the rosy figures shows the true impact that the uncertain austerity measures are providing, with lending actually down 4% over the month from September.
In the market commentary, CML chief economist Bob Pannell observes:
“The underlying picture in the housing and mortgage markets has not changed dramatically over recent weeks. The immediate direction of house purchase activity is a little unclear, although the story for remortgages, with strong year-on-year increases in activity this year, is for the time being more straightforward.
“With the governments housing strategy and autumn statement due shortly, the housing market, with subdued levels of new build and demand, offers a tried and tested means of providing a timely stimulus to the wider economy.”