Number of home loans halved
The property market showed further signs of weakness today (August 13th), after it emerged this week that house prices fell by 0.7 per cent between May and June.
Figures also show that the number of home loans has dipped by half since last year as the credit crunch hits many would-be buyers who are now choosing to rent property.
Statistics from the Department for Communities and Local Government (CLG) revealed that the annual rate of growth slowed to 0.6 per cent in June, dow from three per cent in the year to May.
In England, the annual growth rate in the property market fell from 3.1 per cent in May to 0.5 per cent in June, while rates in Scotland fell from 5.9 per cent to 5.7 per cent in June.
The average house price in the UK now stands at £215,029, which is down from £216,625 in May, with more people turning to the rental market for stability.
"The long-term demand for housing remains high and the fundamentals of the economy are sound with low unemployment and historically low interest rates," a CLG spokesman said.
Mortgage providers are now forcing borrowers to produce higher deposits as they tighten lending criteria, meaning that many people are renting property in London.
Published 13th August, 2008
© 2008 Estates IT Limited
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The property market showed further signs of weakness today (August 13th), after it emerged this week that house prices fell by 0.7 per cent between May and June.