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Mortgage Approvals Up - 50,123

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50,123

Highest since April 2008

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If this keeps up then approvals will be back to peak levels some time next year and so will house prices.

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If that happens, I'm buggering off, and so will most others of worth, no doubt.

See the story on BBC news this morning about local schools having to close since there are not enough families in the area anymore? The reason? Housing costs too much.

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If that happens, I'm buggering off, and so will most others of worth, no doubt.

See the story on BBC news this morning about local schools having to close since there are not enough families in the area anymore? The reason? Housing costs too much.

I also noticed they didn't bother to mention the reasons behind this. They rarely do. They just keep on the nonsense about building 'affordable' homes. Why not just put Laws/Taxes in place to ensure that the existing housing becomes affordable ? Oh wait a second. I realise that would mean so many 'investors' would find their assets drop in value. Can't have that can we ? Even if it means local people could actually grow up and buy a wee house in the place they live. Can’t have that. Not acceptable.

Shocking state of affairs. The lack of explanation in the mainstream media is shocking. No doubt for a very simple reason. Those senior people in the media probably have holiday homes/investments in the villages in question...

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http://uk.biz.yahoo.com/01092009/325/consu...record-low.html

The Bank of England said mortgage approvals numbered 50,123 in July, up from 47,891 in June. Analysts had forecast a reading of 51,000.

Now that the silly season is over, its back to reality and the inevitable trend back to affordability (another 30-40% down to go).

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course, the average mortgage has risen.

is this people taking on higher debt to buy a place, or is this better off people buying further up the ladder

April average loan £118553

May average loan £127000

June average loan £129460

July average loan £133671.

CML says average loan is less than 3 times salary.. Ill be generous and lets see the average salary for a buyer

£39K in April

£44.5K in July.

Looks like Hamish was right, buying is for the well healed only...

given that the average loan would have bought the average house, then we can see where the rises are...rises in lending...again.

and also bear in mind that these are mainstream "prudent lenders" the cowboys are out of play.

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What does that top blue line mean? 1970's inflation coming?

OFCs = Other Financial Corporations

These are financial service and intermediation companies, and the BoE has been arguing that what's happening in this sector distorts the true picture of lending growth in the economy.

Simplistically, lending to households and PNFCs (Private Non-Financial Corporations) represents what's happening in the 'real' economy.

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I also noticed they didn't bother to mention the reasons behind this. They rarely do. They just keep on the nonsense about building 'affordable' homes. Why not just put Laws/Taxes in place to ensure that the existing housing becomes affordable ? Oh wait a second. I realise that would mean so many 'investors' would find their assets drop in value. Can't have that can we ? Even if it means local people could actually grow up and buy a wee house in the place they live. Can’t have that. Not acceptable.

Shocking state of affairs. The lack of explanation in the mainstream media is shocking. No doubt for a very simple reason. Those senior people in the media probably have holiday homes/investments in the villages in question...

Yes, what is all this 'affordable homes' ********? Some minister was talking about it after being questioned on the matter - really gets my back up.

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Summary of today's money supply numbers:

LONDON (Dow Jones)--Holdings of M4 by U.K. companies posted the strongest annual rate of growth in more than a year in July, but holdings by households grew at the lowest rate on record, providing a mixed picture of the efficacy of the Bank of England's measures to jump-start the U.K. economy.

The figures, released by the central bank Tuesday, showed that holdings of money by the household sector edged up 0.2% on the month, and rose 2.5% on the year, the latter being the weakest result since the series began in 1997.

But holdings by the corporate sector lifted 0.6% on the month and 0.2% on the year. The annual rate - though still weak - was the strongest rate of growth since March 2008.

Earlier this month, the BOE's monetary policy committee boosted the size of its quantitative easing program, through which it is buying assets with freshly created central bank money, by GBP50 billion to GBP175 billion.

But "these data still suggest that there is still relatively little of the BOE's newly created money filtering through to households and businesses," said Colin Ellis, European economist at Daiwa Securities SMBC.

M4 lending to households and companies also recorded their weakest monthly and annual changes on record.

Lending to households rose 0.1% on the month and 2.2% on the year, and lending to companies fell 1.7% on the month and 2.9% on the year.

A new series of data showed that overall holdings of M4, excluding intermediate non-financial corporations whose credit crunch-related practices seriously distorted the data, posted a 0.6% on-the-month gain, following an estimated 0.8% fall in June.

The BOE also approximated that the measure rose 3.9% on the year, following a 1.7% drop in June.

M4 money supply comprises the money holdings of households, non-financial companies and financial companies which aren't banks or building societies, and is closely linked to trends in nominal spending in the medium term.

WSJ (subscription required)

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Looks like the market is being driven by cash buyers and those with large deposits.

Question is how long can this situation last? <_<

Not long. If people are actually starting to pay down debt then that is a strong sign that prices are going to be falling further.

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Shocking state of affairs. The lack of explanation in the mainstream media is shocking. No doubt for a very simple reason. Those senior people in the media probably have holiday homes/investments in the villages in question...

I've been wondering that for some time. If you cannot afford to live in a local community because of the influx of holiday investers and part time housing millionaires, the void that is left goes beyond the price of property. Affordable housing is something I do not associate with the uk. Where do these people go? London? It's about time that a decent piece of journalism was put out on this subject.

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But "these data still suggest that there is still relatively little of the BOE's newly created money filtering through to households and businesses," said Colin Ellis, European economist at Daiwa Securities SMBC.

Ill give him a clue why.....WE HAVE TO PAY FOR THE DAMN STUFF.

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Yes, what is all this 'affordable homes' ********? Some minister was talking about it after being questioned on the matter - really gets my back up.

It's newspeak for where ordinary people can only afford to buy a quarter or a half of the house - see shared equity schemes.

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But "these data still suggest that there is still relatively little of the BOE's newly created money filtering through to households and businesses," said Colin Ellis, European economist at Daiwa Securities SMBC.

Ill give him a clue why.....WE HAVE TO PAY FOR THE DAMN STUFF.

I'll give him another clue why... BECAUSE THE BANKS ARE HOARDING THE NEWLY CREATED MONEY LIKE SCROOGE MCDUCK AND NOT LENDING IT OUT

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It's newspeak for where ordinary people can only afford to buy a quarter or a half of the house - see shared equity schemes.

I've got a mate who's a civil engineer, meant to be smart, but he sees these schemes as a great way to get on the ladder before it's pulled up.... something major has to change the psyche of the nation. If the media spoke the truth things may change, but fat chance.

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I've been wondering that for some time. If you cannot afford to live in a local community because of the influx of holiday investers and part time housing millionaires, the void that is left goes beyond the price of property. Affordable housing is something I do not associate with the uk. Where do these people go? London? It's about time that a decent piece of journalism was put out on this subject.

I imagine many head off to big towns like you say. I imagine some move to shabby wee places a good commute from their own village. These holiday home owners like the idea of the wee local town to head off to on their hols. The problem being if they drive out the locals then these nice wee villages will not remain so.

Rich people have always been able to buy a wee holiday home. However in recent times people on average wages who lived in the 'right' place have used this equity to buy another place. This time in a wee village. At the same time locals have difficulty in buying even a small flat in the town they were raised. Everything is so skewed it is mental. Simple solution. Make it expensive and difficult to have a second home.

The only problem being those in charge, media, politics etc.. do very well out of their investment/holiday homes. It is almost like the USSR where certain people in society had beneficial special homes in nice places at the expense of those who needed them .

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No green shoots in Milton Keynes, one EA just dropped prices on some properties 5-10% , all now are Guide Price.

Where i cannot see any drops today?

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