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Mortgage Approvals Plunge By A Quarter In A Single Month

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Mortgage approvals have dropped by almost a quarter in a single month to a record low, new figures show.

The number of loans approved for house purchases in June was just 21,118, a drop of 23pc compared to May, according to the British Bankers' Association.

Since June last year the number of home loan approvals has nose-dived by two-thirds illustrating how steeply the housing market has dived over the past 12 months.

advertisementIt is the lowest number of monthly approvals for house purchases since the BBA started collecting such data in 1997.

The net amount advanced by lenders for house purchases has also fallen to its lowest level since December 2001 - when average house prices were significantly lower.

Net lending, which strips out redemptions and repayments, dropped to just £3.85bn, the BBA said.

The BBA warned that the housing market is on course for its worst year since the housing crash of the early 1990s. David Dooks, the BBA's statistics director, said of the latest figures: "Another record low number of mortgages approved by the banks for house purchase means that the whole market is likely to be at its least active since the early 1990s."

Mr Dooks added the state of the housing market was being felt in other parts of the economy. "The pressure on household finances is being reflected in subdued consumer borrowing, with spending on cards lower than of late and borrowing on personal loans and overdrafts being comparatively weak."

http://www.housepricecrash.co.uk/forum/ind...w_post&f=22

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These figures should turn even the most ardent bull's trousers brown.

Nice quote from Capital Economics on the BBC

"House prices are in line for further sharp falls in the months ahead, [and] will drop by 15% this year." We've already had about 10%, so that's 25% in 18 months.

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Anybody got the data at hand and time to project this leading indicator against HPI which tracks it 6 or so months behind (Spline where are you?). Then also to convert the resulting projected HPI to average house price.

I thought it would be bad but these figures are SO much more extreme than I thought possible.

EP

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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