You are here: cherry > Press releases for August 2011 > Comments from Nick Hopkinson, Director of property company PPR Estates, on today�s CML lending data and the Bank of England inflation figures:

11 August 2011

�As the post credit-crunch lending slump continues it is no surprise to see that the total value of home purchase mortgages taken out in June is 13% lower than even last year�s amounts. The monthly number of UK property sales remains roughly half the level needed for a properly functioning market to flourish. In a world where western Government debt viability is constantly being questioned by the Bond markets and economic uncertainty abounds at a corporate and personal level it is totally understandable that potential home buyers are sitting on their hands and mortgage lending continues to shrink. �High Inflation continues to �surprise� the Bank of England policy makers in a way that �accidentally� helps reduce the national debt. Regardless, their hands are completely tied as we cannot afford more quantitative easing and interest rate rises are totally out of the question while UK PLC�s GDP growth rates remain so anaemic. Amongst other things, higher fuel bills hitting the doormats this month will only add more financial stress to many struggling households. With economic �headwinds� likely to reach gale force I fear we are looking at further falls in house prices and mortgage lending over the rest of this year.� If you would like to speak to Nick, you can contact him on 07768 144497.

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