Lenders becoming more cautious, says Savills

02 October 2007
Mortgage lenders in the UK are taking a more cautious approach, according to one expert.

Jim Ward, residential research director at Savills, said that firms are taking a more "sensible" stance on lending and loan-to-value rate, which may be of benefit to the market.

Such a move may minimise the risk of the market overheating, Mr Ward said, describing present credit conditions as a "short, sharp shock" to the financial sector.

"Some of the attitudes towards risk are quite prohibitive at the moment, but we think those will loosen up over the coming months as stability returns to the market," he remarked.

According to the latest figures produced by Nationwide, the average house price in the UK rose from £183,898 in August to £184,723 in September.

According to Fionnuala Earley, chief economist at the firm, the housing market appeared to have "shrugged off" the recent financial instability in August and September.

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