Mortgage lending hits record low
The number of loans being issued to homebuyers in search of property for sale in London has reached rock-bottom levels, official figures have revealed.
According to the Bank of England's latest report, just 58,000 loans for new home purchases were approved in April - the lowest level recorded since records began in 1999.
That number significantly undercut market expectations of 65,000 and marks the third consecutive month in a row that mortgage lending has reached an all-time low.
And with the property downturn steadily eroding asking prices for London property, gross mortgage lending figures fared no better with just £6.4 billion in loans being issued - down £300 million on March.
Overall lending also faltered in the wider economy, with the six-month average of £8.7 billion being slashed to just £7.3 billion in April.
And yet despite the worsening situation, Jeff Knight of GMAC-RFC predicted that the base rate of borrowing will remain unchanged when the Monetary Policy Committee meets tomorrow (June 5th).
Speaking to the FT, he added: "There seems to be no doubt now that the market has bottomed out, but how long it will bottom out for is what everyone is wondering."
Published 4th June, 2008
© 2008 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Streatham town centre to be improved by BID?
Major improvements could be made to Streatham town centre thanks to a new business partnership.
Read Article ... Published on 25th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Olympic infrastructure 'to drive east London house market'
The infrastructure created by the Olympics will see the east London property market become more popular.
Read Article ... Published on 24th May, 2012
Barking Splash Park opens this weekend
Barking Splash Park will be free to use this weekend (May 25th-27th) to mark its opening.
Read Article ... Published on 24th May, 2012
Southwark estates to get cheaper energy bills
Residents in Southwark can look forward to cheaper energy bills thanks to the creation of a new underground green network.
Read Article ... Published on 23rd May, 2012
Enfield £1.3bn masterplan unveiled
A masterplan has been unveiled that will see a 200-acre site in Enfield regenerated as part of a £1.3 billion plan.
Read Article ... Published on 23rd May, 2012
Londoners encouraged to grow their own fruit and veg
People in London are being encouraged to grow their own fruit and vegetables.
Read Article ... Published on 22nd May, 2012
Merton 'embraces green improvements'
Merton is now a cleaner, greener location to live in thanks to the implementation of the Wandle Valley Low Carbon Zone (LCZ).
Read Article ... Published on 22nd May, 2012
London house prices rise by 1,782% in past 35 years
London house prices have increased by 1,782 per cent in the last 35 years.
Read Article ... Published on 21st May, 2012
Poplar's Chrisp Street to get £100m regeneration
Some £100 million is to be spent regenerating the Chrisp Street area of Poplar in Tower Hamlets.
Read Article ... Published on 21st May, 2012
The number of loans being issued to homebuyers in search of property for sale in London has reached rock-bottom levels, official figures have revealed.