BBA: Mortgage approvals continue to fall
The British Bankers’ Association (BBA) has today revealed a further fall in the number of new mortgages approved by the major banks in November.
According to the BBA, the number of new mortgages approved in the month fell to 29,991, down from 30,689 in October – representing a 20-month low.
Net mortgage lending fell to £1.464 billion in November from £1.719 billion the previous month – the slowest rate of growth in more than a decade.
The figures suggest that the mortgage market will remain subdued over the coming months.
However, remortgaging picked up slightly with 27,045 approvals in the month – almost 4,000 higher than the average of the previous six months, said the BBA.
Commenting on today‘s figures, Howard Archer, economist at IHS Global Insight, said: “The BBA data point to the housing market ending 2010 very much on the back foot, where we expect it will remain for much of 2011.”
Many reports have pointed to a cooling housing market with continuous falls in mortgage approvals.
Earlier this week, HM Revenue & Customs (HMRC) revealed a slump in the number of homes sold in November in the UK.
According to HMRC, 77,000 homes worth at least £40,000 or more were sold in the month – down from the 80,000 sold in October and 6,000 less than in November last year.
Experts have suggested that the housing market will remain subdued in 2011, due to uncertainty surrounding the economy and the ongoing mortgage rationing by lenders.
Over recent times, demand for housing has been weak as many buyers have adopted a “wait and see” approach as uncertainty continues to surround the economy and the spending cuts make prospective buyers cautious.
House prices have also come under pressure as new instructions continue to outstrip buyer demand.