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Lack of lending 'hurting retailers'

Wednesday October 3rd 2012

A lack of mortgage lending to first-time buyers is having a domino effect on other British retail markets, according to a study.

Combined research from Genworth and the British Retail Consortium (BRC) showed a strong relationship between falling high street sales and a lack of mortgage lending in the eight years to 2012.

Home-orientated sales in DIY, gardening, homewares, furniture and floor coverings added up to a combined loss of £34bn last year, with analysts claiming that lenders need to relax their borrowing criteria to reverse a declining trend.

Angel Mas, chief executive of Genworth's Mortgage Insurance business in Europe, said: "A lack of lending leads to lack of productive spending that's impacting the economy and jobs.

"Close examination of the data we have on mortgage lending uncannily mirrors falling retail sales on the high street over the same period and this is statistically relevant."

Copyright Press Association 2012

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