Housing market ‘will continue slowing’
The housing market is likely to remain slow in the coming months because of problems with the supply of funding for mortgages, an industry body has predicted.
A new report by the British Bankers' Association (BBA) revealed that the number of mortgage approvals for house purchases and remortgaging was slightly higher during November than in October.
However, both figures were substantially below the levels of November 2006 and the BBA's statistics director David Dooks expects mortgage activity to remain subdued for the foreseeable future.
"Judging by the significantly lower number of mortgage approvals in October and November - partly resulting from lower demand, partly from tighter supply - the market is likely to continue slowing," explained Mr Dooks.
He added that the uncertainty in the financial markets and tighter household finances were now having a major impact on consumers' attitude to borrowing.
A recent report by the Council of Mortgage Lenders revealed there was an eight per cent decline in gross lending in November.
You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.