The Council of Mortgage Lenders (CML) released data yesterday showing that lending fell to £30.7 billion in November, down 8 per cent from the same time last year. It is the first year-on-year fall since 2005 that clearly ‘demonstrates the market slowdown has started’. CML expect the downward trend to continue next year and called for more support from central banks to help increase liquidity in the money markets.
The state of Britons’ finances is perilous according to a report by the Office of National Statistics (ONS), which shows that households are setting aside more cash for debt repayment than at any time since 1991. Families are having to spend an average of 13.6 per cent of their income on repayments.
Meanwhile the number of first time buyers getting on the London housing ladder has fallen by more than 40 per cent in the past five years. As prices have risen by 54 per cent since 2002, 30 out of 32 boroughs now have their ‘average’ homes priced out of reach of first time buyers, while the average deposit paid by buyers has also increased 49 per cent since 2002. Experts have said that this year has been one of the worst for aspiring buyers.
And finally, Nick Clegg, new leader of the Lib-Dems has announced his shadow cabinet which includes Lembit Opik, boyfriend of one of the Cheeky Girls, becoming shadow secretary for housing.
This is the last lunchtime news for 2014. We will be back on 2 January 2015 to give you the latest housing news as it happens. Merry Christmas and a happy new year to all our readers.