Mortgage lending approvals "subdued"

Mortgage lending approvals in the UK are currently "subdued", according to one expert.

Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors (RICS), advised that the UK is experiencing a restrained "level of activity" in the mortgage market, despite the stamp duty holiday the government has extended to first-time buyers purchasing homes up to a value of £250,000.

He explains that while nearly 340,000 new mortgages were approved in the first seven months of 2010, this is a significantly lower figure than historic norms, despite being up on the comparable period in 2009 when just over 310,000 home loans were granted by lenders.

Mr Rubinsohn stated that he believes a lack of mortgage finance is still the main problem for would-be homebuyers in the UK, with high deposits still proving a major obstacle for many.

In comparison, the July 2010 RICS Residential Lettings Survey revealed that the letting market remains buoyant, with increased tenant demand and a shortage of buy-to-let properties in the UK pushing rent higher.