New french mortgage lending drops by half

New French mortgage lending has dropped by 49.5% between January and December according to new figures from mortgage guarantee firm Crédit Logement and market research firm CSA. 

New lending decreased by 25.7% in January compared to the same period in 2011.

The sharp falls reflect a reduction in tax incentives, a worsening economic outlook and a rise in banking liquidity requirements following Basel III.
In an interview before Christmas with Global edge, Stuart Law, CEO of Assetz, predicted a sharp contraction in mortgage credit in France this year and his predictions appear to coming true. 

John Busby, director of French Private Finance agrees with Law but is more sanguine about the prospects for the French overseas market.

Source: Global Edge