Friday, October 29, 2010

“house prices are dropping in value by more than a typical salary”

House prices to fall amid drop in mortgage lending

House prices are expected to fall further, experts warn, as figures show the growth in mortgage lending is less than a tenth of the level seen during the previous month. Net lending, which strips out redemptions and repayments, was just £112 million in September, down from £1.62 billion in August, according to the latest mortgage figures published by the Bank of England. The latest lending figures remain in positive territory, but they are unlikely to pick up in the coming months as banks restrict the best deals to borrowers with substantial deposits.

Posted by jack c @ 12:05 PM (2391 views)
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11 thoughts on ““house prices are dropping in value by more than a typical salary”

  • sibley's b'stard child says:

    As the ‘please no more QE’ Telegraph story alluded to; the irony is that it has failed precisely because (in part) the public’s appetite for credit has waned somewhat. Existing home-owners are capitalising on low rates by over-paying. And, despite pathetic returns on what savings I have, i’m making a conscious effort to reduce my outgoings each month. Feck ’em, I won’t be contributing to their recovery.

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  • sibley’s b’stard child – what the Government needs is Martin Lewis MoneySpending expert and for his existing site http://www.moneysavingexpert.com to be outlawed (LOL)

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  • Why should we borrow and spend to help the recovery while the bankers are still in place to skim off as much as they want?

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  • Last months figures for lending and mortgages were not a blip then..

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  • sibley's b'stard child says:

    Exactly Jack, can’t have the public weaning themselves off this particular drug; oh no, that simply won’t do.

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  • I’ve just checked the number of house sales per month in my postcode area (CB11) and notice that it’s dropped through the floor..

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  • UT

    did the floor have dry rot? Or in Estate agents speak cute old floor with decorative square effect

    lol

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  • I’ve just checked the number of house sales per month in my postcode area (CB11) and notice that it’s dropped through the floor..

    House prices are holding up rather well in the areas where I am looking; although there is the odd one or two far more realistically priced.

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  • UT, where did you find the sales per month figure ? Hometrack ?

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  • notyethomeless says:

    Like UT @6, just checked sales for September in my area (AL8) and seen a 73% drop since August.

    Numbers were higher in August than usual, but it’s still looking like a 50% drop from the average over this year. Basically, only 6 sales completed in September.

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  • Is the article saying the average loan size was 112m/47000 = 2400 pounds? A drop from an average of 1.62bn/47000 = 34000?
    If so, the market is screwed and there is going to be a massive house price crash very soon! Clearly there are very few FTB’s buying property right now.

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