5
Jan
Bank of England reports increase in net lending
The Bank of England revealed that net lending secured on dwellings
increased by £1.5 billion in November, compared with a
£1.1 billion rise the previous month.
England's national financial institution said that the 12-month
growth rate remained unchanged at 0.9 per cent.
The Royal Institution of Chartered Surveyors (RICS) commented that
the research demonstrates the "increasing momentum" in the UK
property sector.
Oliver Gilmartin, RICS senior economist, said: "[These] figures
support our view that increasing momentum in the housing market
will see further rises in house prices in 2010."
He added that the Bank of England's statistics suggest an
improvement in lending conditions in the country.
However, Mr Gilmartin urged borrowers to be cautious when seeking
out new deals. He explained that a upturn in the property market
coupled with more favourable economic conditions will result in
rises in the base rate of interest.
Mr Gilmartin noted that, because the base rate is currently so low,
any increase will have a greater proportional impact on monthly
mortgage payments.