Friday, October 29, 2010
“house prices are dropping in value by more than a typical salary”
House prices are expected to fall further, experts warn, as figures show the growth in mortgage lending is less than a tenth of the level seen during the previous month. Net lending, which strips out redemptions and repayments, was just Â£112 million in September, down from Â£1.62 billion in August, according to the latest mortgage figures published by the Bank of England. The latest lending figures remain in positive territory, but they are unlikely to pick up in the coming months as banks restrict the best deals to borrowers with substantial deposits.