Friday, 30 January 2009

Bank of England mortgage approvals for December 2008.

New data out for December 2008 here.

The usual commentary really.

Mortgage approvals for house purchase were 31,000 for December 2008 compared to 81,000 a year earlier and 129,000 2 year ago.

These are now bumping along a range around 30,000 and have been since June and must now signify the bottom of the approvals for home purchase.

Just goes to show how reckless the lending was. Gordon Brown was not the only irresponsible one here. Since lenders have now adopted their old lending practices, the mortgage approvals have collapsed down to a very low base.

As properties continue to fall in price to meet the demand at the lower level, lending will pick up again.

If you are a first time buyer, your time is coming. Keep saving for your 5% deposit, because these deals will return in the later part of 2009. House prices will be down another 15%, mortgage deals will be equivalent to rent and the housing market will start a steady climb from Q4 2009.

Good luck.


Oldrightie said...

Can't agree, I'm afraid. Too much debt to be serviced before any upturn.
2013 will be the first real start of recovery, after 3 years of sensible Government. Then a further 2 years to stabilise the economy, two years to return to a decent and sustainable 2% growth. Just in time for another Labour term to f**ck it up again.
Assuming they survive as a party.
Already rumour of a split, led by Frank Field, for a Unity Party.

toronto realtor said...

Your "dominion" here is not doing much better, we had almost 50% sales decline in Toronto real estate, it's like a bad dream. Fortunately, prices are not colliding, because the inventory is still not overfilled, but you can feel the huge nervousness in the air...The Bank is following FED, Tories are trying some tax cuts for first time buyers and home renovations, but but nobody knows how long will this government survive with its plans.
Take care