The building and construction industry group also said loans for established dwellings moved higher in November as a pick-up in home lending began to emerge. However, MBA chief economist Peter Jones said that given the depths to which the market has fallen, further stimulus would be needed over coming months in order to bolster confidence and ensure recovery in the housing market.“Today’s figures are encouraging, with evidence that first home buyers are being encouraged back into the market,” Jones said. “A pick-up in the housing market will be an important catalyst for recovery in the wider economy through the course of calendar 2009.” According to the MBA:The total number of dwellings financed for owner occupiers, seasonally adjusted, rose by 1.3% in November 2008, to be down 24.9% on the same month last year; The number of loans for the purchase of new dwellings (including for the construction of new housing, and for purchase from developers) rose by 2.9% in November, to be down 19.9% on the same month last year; The number of loans for the construction of dwellings fell by 0.3% in November, to be 20% down on the same month last year; The number of loans for the purchase of new dwellings rose by 9.8% in October, to be down 19.6% on the same time last year; The number of loans for the purchase of established dwellings rose by 1.1% in November, to be down 19.6% on the same time last year; and The value of lending to finance the purchase of investment housing fell by 6.1% in November, to be down 27.3% on a year ago.
