The Money Picture
The recent release of further figures is painting a mixed picture for the property industry. The often quoted “shortage of funds” and “lack of liquidity” is often used in many industries not least by those in the property sector.
Lending to businesses in the UK fell by a further £4.8 billion in the 3 months to February 2013 according to the Bank of England. This translates as a fall of 4.4% in loans to companies and small firms from a year previously.
The Bank also said that the mortgage market was largely unchanged. This was reinforced by figures from the council for mortgage lenders showing lending in the first quarter of 2013 to be the same as last year. The Bank of England reported loans to construction firms and house builders was particularly weak. Whilst our experience is that the market has improved in the last 12 months it certainly shows the weakness that led to the “second dip” into recession in the summer of 2012.
Lending to the Real Estate sector – a mainstay of our business dealings, fell by 5.3% in December 2012 from a year earlier.
The council for mortgage lenders are feeling a bit more positive though, saying “conditions in the housing and mortgage markets continue to show signs of improving” according to their chief economist.
The belief and experience for us at Harris Lamb is that the availability and pricing of lending is getting better from a borrowers perspective. There is also the benefit, in many cases, of companies prudently holding cash reserves that they are now happier to deploy in what people believe is a more stable property market.
Undoubtedly the “Money Picture” is getting brighter.
For more information on property and opportunities in the commercial and residential sectors contact one of the agency team at Harris Lamb on 0121 455 9455 or email firstname.lastname@example.org