The Financial Services Authority has published its proposals on the mortgage lending reforms. The plans are aimed at restricting 'risky' lending, whereby applicants will face a more thorough assessment process, thus avoiding borrowing more than they can afford. The hope in implementing these new rules will be to avoid the return of the gung-ho attitude of lenders before the credit crunch.
In other news, research by Zoopla has revealed that 26,744 new British property millionaires were created in 2011. This demonstrates the existence of a two-tier market, as the average value of a British home fell by three per cent between 2010 and 2011. Elsewhere, the number of new home approvals has also fallen, despite a YouGov opinion poll showing strong support for building more properties. Planning for 133,346 homes was approved, which is a fall of 10 per cent on the year before.
And finally, as another challenging year for the property market draws to a close, we would like to wish you a very merry Christmas and a prosperous new year. Click here to view your MMS Christmas card and here for more details on the stories behind the news this week.