1
Oct
Mortgage market slowing, BoE says
The number of mortgages approved in August dipped to their lowest
level in four months, new figures have revealed.
According to statistics from the Bank of England, there were
109,000 mortgages approved during the month - down from the 110,000
that property market analysts had anticipated.
This figure represents a significant downturn from July, when
115,000 mortgages were approved and is further evidence of a
downward trend since November 2006 when the market hit a recent
peak of 128,000.
The latest figures appear to confirm that the five interest rate
rises since summer 2006 and the resulting higher borrowing costs
are beginning to dissuade buyers.
Moreover, since these figures "predate the latest round in credit
in markets" and the "Northern Rock saga", it is likely that further
decline will occur in the coming months, according to Simon
Rubinsohn of the Royal Institute of Chartered Surveyors
(Rics).
He told BBC Online: "Rics' monthly housing market survey is showing
a sharp drop in new buyer enquiries and we expect this to be
reflected in a further fall in activity levels in the housing
market over the coming months."
