
Chart of the Day: Mortgage lending to climb 2% in 2020 and 2021
Slowing population growth and the possibility of cooling measures will limit growth.
This chart from Fitch Ratings shows that mortgage lending is tipped to grow 2% in 2020 and 2021 after a projected decline of 0.5% in 2019.
The lending growth slowdown in 2019 was attributed to an increase of the additional buyer’s stamp duty and tightening of loan-to-value (LTV) limits in 2018.
However, the growth is expected to remain limited, as the annual population growth is projected to slow to below 1%, and the possibility of the government applying cooling measures if home prices showed signs of overheating is said to be high.