New home loans down by 71 per cent
The number of mortgages being approved for home buyers has plummeted by 71 per cent in the last year, figures revealed today (September 1st).
Statistics published by the Bank of England today showed that only 33,000 mortgages were approved during July 2008, down from 114,000 in July 2007.
The serious decline of mortgage lending coupled with sinking property prices is likely to lead London's house hunters in the capital to instead consider renting a flat or house.
Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said: "Yet another low for mortgage activity offers little hope that house price declines will find a floor any time soon.
"With the barrier of mortgage finance fortified by the day, pent-up demand will only exacerbate the boom-bust cycle once a return to normal market conditions resumes."
The data released today also shows that home buyers are struggling to raise the equity needed to purchase property, with some houses in London requiring as much as £70,000 as a deposit compared with the small deposit required for renting.
Published 1st September, 2008
© 2008 Estates IT Limited
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The number of mortgages being approved for home buyers has plummeted by 71 per cent in the last year, figures revealed today (September 1st).