Mortgage difficulties 'have impeded house building'
News Category: Industry News
Published: 23-May-2008
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The toughening conditions in the UK mortgage market, which have been brought about by the credit crunch, have contributed to the slowdown in the construction industry.
That is according to Brian Berry, director of external affairs at the Federation of Master Builders (FMB), who noted that the supply of homes is currently outweighed by demand, particularly as a result of population growth.
He claimed that this matter has been made worse due to the decline in mortgage lending, which has lead developers to cancel building projects.
Mr Berry commented: "The credit crunch has made lending much more difficult, with the result that the recent upturn in house building has stopped as housebuyers find it much more difficult to obtain a mortgage."
In the first quarter of this year 82.5 per cent of first-time buyers used a mortgage intermediary, according to recent figures from the Council of Mortgage Lenders (CML).
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