This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11650909
The article has changed 3 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Demand for borrowing remains weak | Demand for borrowing remains weak |
(40 minutes later) | |
The appetite for borrowing among consumers remained weak in September, according to figures from the Bank of England. | The appetite for borrowing among consumers remained weak in September, according to figures from the Bank of England. |
The number of mortgages approved for house purchases was almost unchanged from the previous month at 47,474, as the housing market stayed at a plateau. | The number of mortgages approved for house purchases was almost unchanged from the previous month at 47,474, as the housing market stayed at a plateau. |
Net mortgage lending was down on the previous month but higher than July. | Net mortgage lending was down on the previous month but higher than July. |
Borrowing through personal loans and credit cards rose slightly in September but consumers remained cautious. | Borrowing through personal loans and credit cards rose slightly in September but consumers remained cautious. |
Known as consumer credit, this figure was up £262m in September. In recent months consumers have adopted a safety-first approach to this unsecured borrowing owing to uncertainty about the economy, jobs and personal finances. | Known as consumer credit, this figure was up £262m in September. In recent months consumers have adopted a safety-first approach to this unsecured borrowing owing to uncertainty about the economy, jobs and personal finances. |
Housing bubble | Housing bubble |
The figures show a dramatic difference between recent months and the height of the property market boom in the autumn of 2007. | The figures show a dramatic difference between recent months and the height of the property market boom in the autumn of 2007. |
In September that year, net mortgage lending increased by £10bn, the second highest monthly figure on record. Three years on, net mortgage lending was about 1% of that, at £112m. | In September that year, net mortgage lending increased by £10bn, the second highest monthly figure on record. Three years on, net mortgage lending was about 1% of that, at £112m. |
Mortgage approvals also ran at a much higher rate, as first-time buyers found it easier to gain access to home loans. | Mortgage approvals also ran at a much higher rate, as first-time buyers found it easier to gain access to home loans. |
Deposits demanded by lenders are now much higher than three years ago. Earlier this week, the Home Builders Federation said a typical first-time buyer needed to save a deposit of just over £37,000 to buy an average-priced starter home of £155,000. | Deposits demanded by lenders are now much higher than three years ago. Earlier this week, the Home Builders Federation said a typical first-time buyer needed to save a deposit of just over £37,000 to buy an average-priced starter home of £155,000. |
The Royal Institution of Chartered Surveyors (Rics) described the housing market as "subdued" at present. | |
"Two key factors are depressing activity levels. Firstly, demand is weakening," a Rics spokesman said. | |
"Secondly, there remains a major scarcity of mortgage finance." | |
Nida Ali, economic advisor to the Ernst & Young Item Club, said: "The figures complement our view that the UK housing market is indeed in the midst of a double-dip. | |
"Recent trends suggest that the state of the wider economy - particularly the labour market - is likely to remain unsupportive in the months ahead. Thus house prices will continue falling during the rest of the year and into 2011." | |
Building societies | Building societies |
Low interest rates have also led to savers seeing little return on their money. | Low interest rates have also led to savers seeing little return on their money. |
The amount of money saved with the UK's mutuals - all building societies and the Co-op bank - fell again last month as people continued to spend rather than save their money, the Building Societies Association (BSA) said. | The amount of money saved with the UK's mutuals - all building societies and the Co-op bank - fell again last month as people continued to spend rather than save their money, the Building Societies Association (BSA) said. |
Withdrawals outstripped new deposits by £819m in September. | Withdrawals outstripped new deposits by £819m in September. |
This was the 18th month since the start of 2009 in which outflows of cash from mutuals' savings accounts have been larger than new inflows. | This was the 18th month since the start of 2009 in which outflows of cash from mutuals' savings accounts have been larger than new inflows. |
"The economic outlook remains challenging for households," said Adrian Coles, director-general of the BSA. | "The economic outlook remains challenging for households," said Adrian Coles, director-general of the BSA. |
"The labour market remains weak, causing earnings to grow at a rate below current price inflation. It is therefore particularly hard in the current low interest rate environment to attract households to save." | "The labour market remains weak, causing earnings to grow at a rate below current price inflation. It is therefore particularly hard in the current low interest rate environment to attract households to save." |