Mortgage approvals have fallen to their lowest level for twelve months, according to the Bank of England. Their figures show that approvals dropped by 5,000 from March to a figure of 107,000 for April.The amount of money lent on homes fell from £9.4bn in March to £8.9bn in April – the lowest for seven months.
This may be interpreted as more evidence of the slowing housing market. Rising interest rates and rising house prices are forcing prospective buyers to think again. Buyer enquiries have fallen for the fifth month in a row, according to the Royal Institution of Chartered Surveyors (RICS).
Despite these trends the average price of a house continues to rise, and now stands at £181,584, according to Nationwide Building Society. Nevertheless, the underlying trend is a slowdown.
Figures from the Land Registry have shown that the movement of house prices varies wildly from one part of the country to another, with London showing the greatest increases, and at the other end of the scale Yorkshire & Humber showing the biggest fall in house prices across England and Wales. Although there are regional differences the general trend is that the market is not performing as well as it was a year ago.
A general shortage of property in favour of sellers seems likely to prop up the market for some time, meaning that a dramatic crash is unlikely.
There has been a dramatic illustration of the lure and the shortage of the right property this week in Exeter. A £225 retail complex is being finished and to get the best of the 23 luxury flats, prospective buyers have set up camp in the middle of the Princesshay development. Flats range from £150,000 to £600,000. The lower end flats are affordable and people are determined not to miss out on a great opportunity, living rough or setting up tents to secure a deal.
Tags: interest rates, mortgage <BR/>
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