House prices drop 1.1% as mortgage lending drops again

Mortgage lending hits decade low

Mortgage lending hits decade low

Mortgage lending dropped again in December, according to figures released by the Bank of England.

The new figures represent a 21 month low for the market, and sum up a pretty grim year for the housing market.

Net lending, so lending without repayments taken into account, came to just £8.2billion last year, which is £3billion less than in 2009.

The Bank also revealed in its figures that net lending is now at its lowest level since the Banks figures began in 1987.

To add to the housing markets misery, Nationwide have also released their latest figures.

The building society revealed that housing prices are expected to continue falling in January, and now average 1.1% less than they did at the end of 2009.

Cheif Economist at the building society, Robert Gardner said, “The outlook is still highly uncertain, but it seems most likely that… prices will continue moving sideways or modestly lower in 2011.”

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