BoE: Mortgage approvals continue to fall

Permalink: BoE: Mortgage approvals continue to fall
by Kay Murchie

The Bank of England has today revealed mortgage approvals fell in June - more than expected, fuelling recent reports that the housing market will be subdued for the remainder of the year.

According to the Bank, mortgage approvals for the month fell to 47,643 from 49,461 in May - well below the previous six-month average of around 50,000.

The figure is also well below the 60,000 reached in November 2009 as buyers took advantage of the stamp duty holiday, which prompted a rush to buy homes towards the end of last year.

They are also 50% below levels experienced in 2006.

Today’s figures from the Bank reflect the ongoing sluggish activity of the housing market in 2010.

In related news today, the Nationwide Building Society said house prices fell by 0.5% in July compared with June.

The latest house price gain means the annual rate of house price inflation fell to 6.6%, down from 8.7% in June, with the average UK home costing £169,347.

The annual rate of house price inflation is now at its lowest since December, according to the Nationwide.