UK Mortgage approvals fall by a whopping 64%
September 23, 2008
Approvals for house purchases in the UK are 64% lower than a year ago.
The British Bankers’ Association (BBA) have reported that major banks in the UK approved 21,086 mortgages, down from 58,564 in August last year.
Also, approvals for remortgaging a property were down 28% at 47,765.
Experts advise that falling house prices, stricter lending criteria and the uncertainty on stamp duty are the main reasons for the huge drop.
The BBA’s members account for roughly two thirds of the UK mortgage lending.
Retail spending down again as house prices plummet at record speed
May 14, 2008
If you’re starting to think the economy couldn’t get any worse I have some bad news for you, it is getting worse every day. For the second month in a row, retail spending is down and house prices across the country dropped at a rate greater than at any other time in the last 30 years.
The Royal Institute of Chartered Surveyors (RICS) has warned of further drops in house prices claiming the shortage of houses on the market is slowing down the drop in house prices. If the economy problems cause people to sell their homes out of necessity, much larger drops would be probable. A reduction of 10% in house prices by the end of the year is not unlikely.
Will a cut in interest rates help lesser then impact of this so called global credit crunch? Most economists believe the Bank of England will cut rates next month. I guess we can only sit tight and wait and see.
Reports: The Guardian, The Independent, Reuters
Annual House Price fall for first time in 12 years
May 1, 2008
The average house price in the UK has made it’s first year on year drop since March 1996. After 12 years of inflating house prices, the average house is now 1% cheaper than it was a year ago standing at £178,555.
Could this just be the start?
David Blanchflower, a member of the Bank’s Monetary Policy Committee, said recently that house prices could fall by up to 30% over the next few years if interest rates were not cut to keep control.
Reports: BBC, Times Online, Business Week
