Monthly stat porn
It is statistics time once again. New figures show that mortgage lending halved during August and the number of loans approved for house purchase slumped to a new record low.
Net mortgage lending dived to just £2.1 billion during the month, less than half of July’s £4.8 billion. That puts mortgage lending at the lowest level since February 2001.
The British Bankers’ Association continues to blame the slump on the combination of falling house prices, the current economic problems and lenders’ tighter lending criteria as a result of the credit crunch.
But the group also added that speculation that the Government was going to make an announcement on stamp duty also curbed demand during August as people delayed buying a house in the hope that they would not have to pay the tax.
The Chancellor finally announced in the first week of September that stamp duty would be suspended on properties costing up to £185,000 for a year.
The National Association of Estate Agents has also blamed speculation over the future of the tax for a further drop in sales in August, with agents selling an average of just five properties each during the month.
The number of mortgages approved for house purchase continued its downward spiral during August, dropping to a new record low of 21,086, 5% less than in July and 64% fewer than in the same month of 2007.
Remortgage approvals fell for the fourth month in a row, dropping to 47,765, the lowest level since February 2001 and 27.8% fewer than 12 months ago. Loans approved for equity withdrawal and buy-to-let properties were 35.3% lower than in August 2007.
Widespread expectations that house prices will continue to fall for a considerable time to come is also significantly limiting housing market activity, as is heightened concern over the economic outlook and job prospects.
