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Fresh low for mortgage approvals UK house prices falling sharply
(10 minutes later)
Mortgage approvals fell in November to their lowest level for at least nine years, the Bank of England has said. UK house prices declined by 2.2% in December, according to the latest survey by the Halifax.
Approvals totalled 27,000, compared with a downwardly revised 31,000 in October. It was the lowest figure since the series began in January 1999. The monthly fall brings the average price of a UK home down to £159,896. Compared with December 2007, house prices slumped by 16.2%.
The figures came as the Bank of England said mortgage approvals fell in November to at least a nine-year low.
Approvals totalled 27,000 in November. It was the lowest figure since the series began in January 1999.
Subdued
In monetary terms, mortgage lending rose by £740m in November, but that was still less than a tenth of the amount seen in the same month in 2007.In monetary terms, mortgage lending rose by £740m in November, but that was still less than a tenth of the amount seen in the same month in 2007.
The figures are the latest indication of the extent of the housing downturn.The figures are the latest indication of the extent of the housing downturn.
They come just before the Halifax is due to release its latest house price figures.
The latest fall in mortgage approvals is likely to increase pressure on the commercial banks to start to raise lending levels.The latest fall in mortgage approvals is likely to increase pressure on the commercial banks to start to raise lending levels.
These are still subdued as a result of the financial crisis, despite efforts by the Bank of England to help the banks improve their liquidity.These are still subdued as a result of the financial crisis, despite efforts by the Bank of England to help the banks improve their liquidity.
However, with house prices falling in recent months, and people waiting to see whether mortgages will get significantly cheaper, activity in the mortgage market is likely to remain subdued for sometime.However, with house prices falling in recent months, and people waiting to see whether mortgages will get significantly cheaper, activity in the mortgage market is likely to remain subdued for sometime.
The number of mortgages approved, but not yet lent, is a good indicator of medium-term trends in lending.The number of mortgages approved, but not yet lent, is a good indicator of medium-term trends in lending.