Lending for spanish house purchases fell by 39pc in october

New loans granted by banks for house purchases in October fell 39% over the same month of 2010 and amounted to 2,745 million euros compared to 4,484 million euros in the same period of last year, according to provisional data published by the Bank of Spain.

El Mundo reported that the data confirms the downward trend recorded for house purchase loans during 2011. However, one positive note is that in October, new loans rose for the third consecutive month over the previous month, in this case by 3%.

According to the latest Spanish property market index (IMIE) published by the property valuations company Tinsa, the price of housing in Spain registered in October a year-on-year fall of 6.9%, representing a cumulative decline in price since December 2007, when it reached its highest value, of 23.7%.

The increase in loans granted for house purchases in October contrasts to the decline in consumer credit, which fell 17% in a month to 1,230 million euros. Over 12 months the decline was 15%, since consumer loans reached 1,450 million euros in October 2010.

Source: Kyero.com