As January mortgage approval numbers tumbled a bit, the drop was not enough to affect the amount of new house building which continues from two of the UK’s major firms.  Persimmon and Bovis are enjoying quite fruitful days thanks in part to the Bank of England’s Funding for Lending scheme and other government incentive plans.  These two firms continue to see increases in sales despite a lack of consumer confidence and rising inflation, conditions which typically stymie growth for anyone within the housing market.    

Persimmon has already passed the 1 billion pound sales figure for the year 2013, which is monumental compared to the last six years.  This figure has not been approached since the prosperous year of 2007.  Visits to sites of Persimmon builds are ahead of last year by almost 5%.

Mike Farley, soon to be former chief executive, commented on the impact of the Funding for Lending scheme as well as other incentive plans available.  He has seen lending rates fall and first time buyers gain an advantage with higher loan to value type loans.  Along with falling rates and better loans the competition for borrowers remains keen, as lenders continue to sharpen the pencil.  It is not unusual now to find extra low rates combined with basement closing costs.

Farley remarked on the state of mortgage lending in general, saying: “The FLS has made some impact. We have seen lower rates since Christmas so that helps people with affordability. Lenders are looking to lend a bit more as well — they are open for business. We’re seeing broad-based improvement.”