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Home sales fell back in July, says HMRC | Home sales fell back in July, says HMRC |
(40 minutes later) | |
The number of homes sold in the UK fell back in July, according to figures from HM Revenue & Customs (HMRC). | The number of homes sold in the UK fell back in July, according to figures from HM Revenue & Customs (HMRC). |
There were 81,000 completed sales last month, down from 86,000 in June and 2,000 fewer than in July last year. | There were 81,000 completed sales last month, down from 86,000 in June and 2,000 fewer than in July last year. |
However, sales so far this year have been 9% higher than in the first seven months of 2011. | However, sales so far this year have been 9% higher than in the first seven months of 2011. |
Separately, the British Bankers' Association said mortgage approvals rose 10% in July, which may indicate a rise in forthcoming sales. | Separately, the British Bankers' Association said mortgage approvals rose 10% in July, which may indicate a rise in forthcoming sales. |
The BBA's members account for most mortgage lending in the UK. | The BBA's members account for most mortgage lending in the UK. |
A substantial minority of sales go through without a mortgage because some buyers can provide all the money from their own resources, but approvals are still a good indicator of forthcoming trends in the market. | A substantial minority of sales go through without a mortgage because some buyers can provide all the money from their own resources, but approvals are still a good indicator of forthcoming trends in the market. |
The BBA said approvals for home buyers in July stood at 28,441, up 10% from 25,940 the month before. | The BBA said approvals for home buyers in July stood at 28,441, up 10% from 25,940 the month before. |
Uncertain outlook | |
Despite this, David Dooks of the BBA said the wider picture was of people and companies still very reluctant to borrow while the economy was in recession. | Despite this, David Dooks of the BBA said the wider picture was of people and companies still very reluctant to borrow while the economy was in recession. |
"We continue to see the household sector increasing deposits and repaying debt," he said. | "We continue to see the household sector increasing deposits and repaying debt," he said. |
"Repayments of both mortgages and unsecured lending have grown strongly this year as households seek to reduce borrowing and borrowing costs. | "Repayments of both mortgages and unsecured lending have grown strongly this year as households seek to reduce borrowing and borrowing costs. |
"Companies are reluctant to borrow or invest new funds while domestic and international trading activities remain subdued or uncertain," he added. | "Companies are reluctant to borrow or invest new funds while domestic and international trading activities remain subdued or uncertain," he added. |
Ashley Brown, of mortgage broker Moneysprite, said the outlook for the property market was still "unremittingly dark". | |
"July's mortgage approvals may have crept up since June, but the gravity is irresistible - the figure is 17% down on the same time last year, and net lending remains at negligible levels," he said. | |
"The underlying reason is simple - debt aversion among consumers and a lack of appetite from lenders. | |
"Until lenders start lending consistently at higher loan to values, the mortgage - and subsequently property - markets will go nowhere," he warned. |
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