Tuesday, Aug 24, 2010
Bear now on fourth helping
Telegraph: Mortgage approvals fall again
Mortgage lending remained subdued during July as the housing market failed to pick up, new figures show. Net lending by the major banks fell to £2bn in July, its second lowest level since February 2001, according to the British Bankers' Association...The market also showed little sign of picking up, with the number of mortgages approved for house purchase dropping for the second month in a row. A total of 33,698 loans were in the pipeline for people moving home, 2.5pc fewer than in June, and well down on the recent high of 45,415 reached in December. Ed Stansfield of Capital Economics said... "It is hard to see what might give a boost to mortgage lending in the near term."
Posted by mark wadsworth @ 03:31 PM (877 views) Add Comment
4 Comments
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1. jack c said...
This from Martin Ellis blog
House prices to remain broadly unchanged
Posted by Martin Ellis at 24/8/2010 12:15 PM BST on community.ftadviser.com
House prices increased by 0.6 per cent in July, reversing the fall in June.
Overall, there has been little change in prices during 2010 so far.
The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market.
It is also in line with our view that house prices will be broadly unchanged over 2010 as a whole.
The increase in the number of properties for sale over the past few months, boosted by the recent abolition of Housing Information Packs, has relieved much of the pressure that was driving up prices in 2009.
Low interest rates and a recovering economy, however, are underpinning demand and continue to support the market.
Low mortgage rates have reduced the burden of servicing mortgage debt.
Nationally, typical mortgage payments for a new borrower have fallen from a peak of 48 per cent of average disposable earnings in 2007 quarter three to 30 per cent in 2010 quarter two.
This key measure of affordability is at a more favourable level than the long-term average over the past 25 years (37 per cent) and is a key factor supporting housing demand.
Housing market activity is also broadly stable.
Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase in the three months to June – a leading indicator of completed house sales – were modestly (two per cent) higher than in the previous quarter, on a seasonally adjusted basis.
Activity remains significantly lower than a few years ago with approvals 56 per cent lower in 2010 quarter two compared with 2007 quarter two.
The total value of privately owned housing stock in the UK more than doubled over the past decade.
There was a 118 per cent increase from £1,719 billion in 1999 to an estimated £3,755 billion in 2009.
During the same period, the retail price index rose by 29 per cent.
However, since 2007 the value of housing stock in the UK has declined by 8 per cent.
This reflects the reduction in house prices between mid 2007 and early 2009.
The improvement in house prices in 2009 saw housing value grow by an estimated two per cent during the year.
The north-south gap in the value of the private housing stock narrowed during the 'noughties'.
Between 1999 and 2009, the value of housing in the north increased by 132 per cent compared to 109 per cent in the south.
As a result, the north's share of UK housing assets rose from 41 per cent in 1999 to 44 per cent in 2009.
Martin Ellis is a housing economist at Halifax
2. mark wadsworth said...
"Low interest rates and a recovering economy, however, are underpinning demand and continue to support the market."
Who said that? Ah... "Martin Ellis, a housing economist at Halifax"
3. str 2007 said...
Thanks for that post jack
25 percent off from here should get us inline with rpi, that'll do for me.
There's probably some fancy calc to show the influence of houses within the rpi figure, intact maybe we should be looking at getting inline with CPI not rpi but hey I just want a home at a sensible price.
4. tenyearstogetmymoneyback said...
After yesterday Express headline (and lots of similar ones) who would want to increase their mortgage ?