CML reports-Decrease in lending

Recent report released by CML i.e. Council for Mortgage Lenders that the lending has fallen by 4 percent as compared to September 2011 but it is higher when compared with the figures of October 2010.

Chief UK and European Economist at IHS Global Insight, Mr Howard Archer, claimed that the lending is still less when compared with long term norms. He also said that house price will drop by around 5 % by mid 2012.

Also around 13.1 billion pounds (mostly including re-mortgaging) has been lent by banks and building societies. The renting cost hiked by 0.2 percent which is considered as a smallest figure because from February onwards, the demand for rented properties have increased.

Whereas the South- East has seen the increase in rents by 1.5 percent in October. This has been mostly witnessed by London as compared to the last year and rents have decreased by 1.4 percent in North-East and South -West.

Cost of renting is increasing yearly at a speed of two times of the average of salary and suggestion would be that the tenants should use their large part of the disposable income towards the cost of accommodation for the next year.

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