Another drop in mortgage approvals
The slowdown in the housing market has continued after Bank of England figures showed another dip in the number of home buyer mortgages.
Approvals of loans for house purchase dropped for the fourth month in a row to 59,426 in October, the lowest level since June last year and a 22% decline from the recent peak of 76,574 in January.
Mortgage lending and housing demand have been slowing since the summer amid tighter regulations, a shortage of homes on the market and recent fears over when interest rates will rise.
However, Capital Economics property expert Matthew Pointon said there were reasons to think this dip will not last for much longer. He said mortgage interest rates have started to fall on the back of earlier declines in wholesale rates as expectations for when the Bank of England will start to raise rates have moved further into the distance.
He added: “Coupled with rising employment and the imminent return of real earnings growth, consumers are the most confident in making a major purchase since mid-2007. That suggests lending volumes are set to rise.”
Belfast Telegraph Digital