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Weak lending figures in the mortgage industry along with
a statement from property developer Taylor Woodrow that
their sales target for new properties will be cut by 6%,
added to the current slump in the property market.
According to the CML (Council of Mortgage Lenders), September
was the first year-on-year drop in gross lending for four
years. Last month the £25.4bn that was lent, was nearly
a quarter down on figures in July which were at a record
high, and also 2% lower than the figure in September 2003.
According to research, house prices in Scotland are falling
slower than elsewhere in the UK.
A slower market offers the opportunity to buyers to take
their time in choosing which property they want to go for.
Despite three interest rate rises in the past 5 months,
the housing market in Scotland remains buoyant.
Recent surveys undertaken by the Royal Institute of Chartered
Surveyors showed that the proportion of its members that
were reporting price falls was the highest it has been in
nine years.
The NAEA (National Association of Estate Agents) stated
that property prices had fallen for the 4th month in a row,
showing that the market is beginning to change.
Both organisations stated that a full blown crash is not
likely.
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