There is no indication what part of the UK is going up each month, and if this the case why are the surveyors not reflecting this positive change in their valuations. Maybe because the surveyors have got more sense than to get caught up with the hype in trying to talk up the market when the demand is most certainly there, but if the lenders are not lending, not much will change.
Oh god I do hate doom and gloom but when you are saying no to 8 out of ten mortgage enquiries because we cannot place them due to lending restrictions talk of rising prices is just that talk with no substance. The pent up demand for residential mortgages is horrendous, and when the lenders doors do open just a little to allow a shaft of lending sunlight the market will almost certainly take off as it did in 1996 following the last downturn. It will settle down again after the honeymoon period, but that first year is likely to see some real changes in property values, and boy do we need it.
The worry is at present that having seen a real positive run on the Footsie 100 coming from 3800 to around 5200, are we going to see the dead cat bounce with a double dip in 2010. The markets seem to be very positive when there is nothing to back up this rise in the stock markets. To over cook the market now would be a disaster; we need a nice slow recovery with no nasty dips to spoil our fun.
The FSA. are not helping our cause with the new banking rules which would require lenders to stockpile up to £106bn of extra government bonds, and to reduce the reliance on short term funding. With the banks not talking or trusting each other short term funding is not likely to be an option in today’s market.
In truth we do not expect lending to change in 2009 but it will be a very gloomy year in 2010 if the brakes do not come off lending. We need to see funds being made available for residential mortgages, commercial mortgages, commercial finance, and business loans, the knock on effect to the retail sector that rely on a healthy property market to sell the associated products would be massive. The building industry have had a long holiday and it would be nice to see the sites coming alive again, with the builders bums that we all love to laugh about, they will be a welcome sight.
Banks and lenders may have to be retrained as they have become so used to finding every which way to say no to our application for a commercial mortgage and finance that smiles may return to banking, because they can now say yes.
Michael J Alexander acommercialmortgage4you.co.uk
[ add comment ] ( 2 views ) | [ 0 trackbacks ] | permalink |
( 3 / 110 )
Calendar
