BoE: Mortgage approvals continue downward trend

| November 29, 2010 | 0 Comments
BoE: Mortgage approvals continue downward trend

The Bank of England has today revealed mortgage approvals fell again in October - to an eight-month low.

According to the Bank, there were 47,185 loans approved in the month – the lowest level since February, albeit in line with expectations of 47,000.

The figure is less than half the level reached at the height of the housing boom in 2007.

There is little good news surrounding the housing market currently and many experts expect house prices to fall in the coming months. Experts have warned that lending could slow “more significantly” in the months ahead.

However, net mortgage lending rose faster than expected - by £963 million in the month - the biggest gain since August.

In other news today, housing intelligence group, Hometrack, revealed house prices in England and Wales fell for the fifth consecutive month in November.

According to Hometrack, house prices fell by 0.8% on the month in November to £155,000.

The ongoing fall in values continues to be the result of a higher level of instructions on the market and a lack of buyer demand.

Other housing surveys suggest the market is cooling. Last week, the Land Registry reported a 0.8% fall in house prices for the month of October, while HMRC revealed a slump in the number of homes sold in October in the UK.

According to HMRC, 79,000 homes worth at least £40,000 or more were sold in the month, a fall of 11% on an annual basis.

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