27
Oct
House buyers sit on their hands as mortgage levels drop
The number of mortgages that have been approved for house
purchases fell again in September, to just 31,104, making net
mortgage lending the lowest for a decade raising concerns.
The figure, Raised by the British Bankers Association,
comes after the Council of Mortgage Lenders had said the
level of gross mortgage lending was also at its lowest for a
decade.
The two following sets of figures contrast with the much better
news that the British economy has grown by 0.8% between July
and September.
Meanwhil, borrowers are taking out smaller house buying
loans. Figures raised by the British Bankers Association
showed that the average value of the loans was £142,900, down
from £143,500 in August. The average was some £5,100
lower than the average of the previous six months, although 4.1%
higher than the previous year.
Net mortgage lending by all the major banks, which strips
out redemptions and repayments, stood at £1.6bn in September,
down on last month’s total of £2.5bn and the lowest
figure since October 2000.
BBA statistics director David Dooks said: “Demand for new
mortgages remains low despite more properties on the market and
falling house prices.”
Location Estate Agents in southampton are finding that houses
are still selling, however stock is outweighing demand making it
crucial that house are priced correctly.
Location Lettings Agents in southampton are finding the market
is having an opposite effect and rental properties are letting
within days of coming to the market.