The number of people buying homes has fallen to its lowest level in fourteen years. Year on year activity for the housing market dropped by nearly 40 per cent in January, according to research by Connells Survey and Valuation.
Connells says the rental market has suffered most, with its share of the purchase market falling from 15 per cent last year to just 11 per cent in January.
Athough there was a boost of three per cent in January’s mortgage approvals, Connells says the figure for January is the weakest since Bank of England records began. It says mortgage approvals fell in ten of the last twelve months.
Connells Survey & Valuation managing director Ross Bowen says: “The housing market remains quiet and the MPC must remain focused to stimulate growth.”
He adds: “Rental yields are not performing as well as other forms of investment and the incentive to invest relies on the long term capital gain available.”
According to the research, mortgage approvals for house purchase rose to 75,300 from a December low of 73,000.
Non-seasonally adjusted approvals rose to 50,600 from December’s 50,000. Connells says this is the first increase in mortgage approvals since May 2007.