Mortgage approvals lowest since May 2009
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The number of mortgage approvals for house purchases fell to its lowest level since May 2009 in February, according to figures from the Bank of England.
The total number of approvals was 47,094, down from 48,099 in January and below the previous six-month average of 55,130.
However, total net lending to individuals rose by £2.1bn in February, meaning a 0.9 per cent twelve-month growth rate.
Approvals for remortgaging were higher than in January, increasing to 27,297, and also the six-month average figure.
RICS chief economist Simon Rubinsohn says: “The weaker trend is in part a response to the rush to push through house purchases before the end of last year to take advantage of the stamp duty holiday. The particularly poor weather in the early part of 2010 may have also contributed to the disappointing level of activity in the first two months of this year.
“This trend is likely to be at least in part reversed over the coming months helped both by the Budget announcement of a stamp duty holiday for first time buyers as well as a continuing pick-up in instructions from vendors. Lack of mortgage finance and uncertainty stemming from the approach of the general election will remain a drag on activity but our suspicion is that mortgage approvals will still climb back above 50,000 per month during the spring.”
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Readers' comments (1)
John Gilbert | 30 Mar 2010 10:10 am
The downturn in demand is not unexpected given very weak mortgage intentions in last December.'s Financial activity survey This spring's survey points to a similar weak picture with depressed property purchase intentions that reflect the broader market including potential cash buyers.
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