U.K Has Slowest Year Since 1987

A temporary tax break for some United Kingdom homebuyers likely contributed to net U.K. mortgage lending exceeding expectations for 2009, but it was still the slowest year since at least 1987. Net U.K. lending for 2009 totaled £11.5 billion ($18.3 billion), above the £8 billion ($12.7 billion) the CML had expected. This was seen as largely due to a relatively strong purchase market in the second half of the year that the tax break likely contributed to as well as a relatively weak U.K. refinance market. Gross lending for the year in the United Kingdom, at £13.4 billion ($21.3 billion), came in much closer to the CML's forecast (£13.5 billion) than the net lending figure for the period. "These figures confirm that the mortgage market ended 2009 in much better shape than it started, but it looks like a slow haul back to meaningful levels of activity," said CML economist Paul Samter. He added that the apparent rush to close in 2009 ahead of the deadline for the tax break could mean the market has a couple of slow months ahead of it.