Mortgage approvals sank to their lowest level for 12 months in April, figures released today by the Bank of England have revealed, suggesting a drop-off in demand for property.
June 12, 2007 (Press Release) --
According to the bank's figures, the number of mortgages approved in April fell to 107,000, compared with 111,000 recorded in March.
Mortgage lending overall rose by £8.9 billion over the month - significantly less than most analysts had predicted, and a further hint at the discouraging effect that recent interest rate rises have had on potential buyers.
Commenting on the figures, David Stubbs from the Royal Institution of Chartered Surveyors (Rics) said that rising interest rates had affected first-time buyers' ability to get into the market.
"The result is weaker demand, with mortgage approvals now down 16 per cent from their peak in November," he said.
"Activity in the housing market will continue to decline as the year progresses. However, it would take a significant slow down in economic growth to produce steeper declines."
The indicators of a steep decline are there, says the UK's leading fast purchase property firm National Homebuyers. Director Julian King comments: "We have seen properties being marketed at excessive prices. However, they do not sell at that price.
"Properties are marketed at too high a price and the buyers do not exist. Ultimately, this is terrible news for the seller.
"Vendors should be aware that this means there is the likelihood of more delays in selling properties."
National Homebuyers specialise in helping homeowners sell their property quickly. For more information about their quick sale process, visit www.nationalhomebuyers.co.uk/index.asp or call 0870 979 8118.
Mortgage lending overall rose by £8.9 billion over the month - significantly less than most analysts had predicted, and a further hint at the discouraging effect that recent interest rate rises have had on potential buyers.
Commenting on the figures, David Stubbs from the Royal Institution of Chartered Surveyors (Rics) said that rising interest rates had affected first-time buyers' ability to get into the market.
"The result is weaker demand, with mortgage approvals now down 16 per cent from their peak in November," he said.
"Activity in the housing market will continue to decline as the year progresses. However, it would take a significant slow down in economic growth to produce steeper declines."
The indicators of a steep decline are there, says the UK's leading fast purchase property firm National Homebuyers. Director Julian King comments: "We have seen properties being marketed at excessive prices. However, they do not sell at that price.
"Properties are marketed at too high a price and the buyers do not exist. Ultimately, this is terrible news for the seller.
"Vendors should be aware that this means there is the likelihood of more delays in selling properties."
National Homebuyers specialise in helping homeowners sell their property quickly. For more information about their quick sale process, visit www.nationalhomebuyers.co.uk/index.asp or call 0870 979 8118.
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