Monday, March 26, 2012

Britain’s housing market is rotting from within

Britain’s housing market is rotting from within

With mortgage approvals at record highs since the crisis began, Britain's housing market appears to have turned a corner. But in fact, the worst is yet to come, says Phil Oakley.

Posted by martingreen @ 12:09 PM (1945 views)
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6 thoughts on “Britain’s housing market is rotting from within

  • These people have been saying that for years…

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  • Mortgage approvals at a record high?

    The number of mortgage approvals for house purchase by high street banks fell by 13% between January and February, figures from the British Bankers’ Association show.

    There were 33,103 house purchase approvals in February, down from 37,977 in January and 6% lower than the previous six-month average of 35,399.

    By value there was £5bn worth of house purchase approvals in February, down from £5.8bn in January.

    .The banks’ gross mortgage lending totalled £7.9bn in February, 2% lower than January’s £8.1bn and down from a previous six-month average of £8.4bn.

    In total there were 65,737 mortgage approvals in February worth £7.9bn. This is down 11% by number and 13% compared to January.

    Net mortgage lending was £0.5bn in February, down from £0.7bn for both January and the previous six-month average.

    The BBA says house purchase approvals fell back to more normal trend levels in February, as demand from first-time buyers looking to beat the Stamp Duty holiday and buy-to-let investors fell away.

    The number of remortgage approvals were at their lowest level for 13 years at 18,147 in February, which is down 12% on the previous month and down 21% on the previous six-month average.

    David Dooks, statistics director at the BBA, says: “Businesses and households continue to be cautious about their finances in the face of difficult economic times and this shows up in an reluctance to take on new credit, or where possible, seeking to pay back bank borrowing.

    “Confidence will be helped in the coming months by official schemes to support the mortgage market and stimulate business demand for credit.”

    SOURCE http://www.mortgagestrategy.co.uk/economy/banks’-house-purchase-loans-down-13-in-february/1048590.article

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  • Buried in the comments…

    16. Sibley

    This article is way off beam. House prices are rising again. Supply and demand. The banks will start lending 100% mortgages soon. Watch this space. FTB’s need to get on the ladder today or get priced out.

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  • rantnrave

    “The banks will start lending 100% mortgages soon. Watch this space” – In reality the reverse is happening right now (I monitor such things as it’s part of my job !)

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  • Aye Jack.

    Sibley’s comment gets some (deserved) flack from other posters there…

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  • 16. Sibley

    This article is way off beam. House prices are rising again. Supply and demand. The banks will start lending 100% mortgages soon. Watch this space. FTB’s need to get on the ladder today or get priced out.

    I think he is right, in part, it’s all down to UK government & BOE printing a hell of a lot of money. Also, I have a mate that works for RBS and he is saying that the bank has effectively repaired itself – via the complete destruction of savers – and fully intends to start offering large mortgages again in the next 1 to 2 years.

    Madness I know……..

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