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Nationwide: Buyers have reached the limit on affordability

Prospective buyers have started to accept that house prices may be out of their reach, according to Nationwide.

Recent figures from the Land Registry show the number of residential housing transactions dropped to 103,690 in April, down from 109,570 in February 2014, to 104,930 in March. This represents a drop of 5.4 per cent in a two-month period.

Speaking to Money Marketing following the building society’s results yesterday, Nationwide group director Alison Robb said volumes have been hit by the mortgage market review, but that more importantly, prices in some areas have reached levels that many buyers simply cannot meet.

Robb said: “If you look at the number of transactions on a monthly basis, we have gone from beyond frenetic just before Easter to what we categorise as very busy – especially around London where prices have risen fastest.

“Undoubtedly the new processes and systems brought in as a result of the MMR have led to some lenders experiencing delays, but the slowdown in transaction numbers, we feel, is more to do with people starting to hit their limit in terms of what they can afford to pay.”

Yesterday Nationwide announced it had grown its mortgage lending by 31 per cent in the year to April, with a total of £28.1bn advanced to buyers.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. My flexi account was ” out of Reach “, when this account advertised as ” instant access” where I was denied access t my own money £ 2,000 when I provided a cheque book and Passport – which Natonwide employees refused to accept as ” Proof of Identity ” ( I my own branch ). Graeme Beale confirms through various untrained unprofessional employees – is that clients MUST use a Visa Card ( because Graeme Beale ceo – is a director on the board of Visa ( conflict of interest – against customers) – and it appears Graeme Beale trusts his employees less than the mutual customers and shareholders of Nationwide . Clients and shareholders should not need to put up with such tardy behaviour. Nationwide should have their banking licence revoked.

  2. Richard Merrett 29th May 2014 at 11:19 am

    This is wrong from my experience. My colleagues and myself have noticed a large drop in the lending that Nationwide say is affordable since their new calculator following MMR. Cases that fit before would not fit now. Go back to Nationwide and ask how many cases that fit prior to MMR fit now? I am struggling to get HTB cases past their affordability calculator, other lenders no problem.

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