Mortgage Lenders report continued momentum loss in House prices
Figures reported by Nationwide and Halifax are showing a continued decline in the growth of house prices on the UK market. With house price inflation dropping to 9.0% in October, down from 9.4% in September on an annual basis quoted from Nationwide.
“A variety of indicators suggest that the market has lost momentum” quoted Robert Gardner, Nationwide’s chief economist. The trend may continue in the near term with the number of approved mortgages dropping in September by almost 20% below the start of the year.
The Bank of England said yesterday that the number of mortgages being approved has fallen to the lowest level in the last fourteen months. This was a bigger drop than expected and the lowest total since July 2013. Whilst the Land Registry said that house prices had fallen in September for the first time in nearly a year.
The chief executive of Dragonfly Property Finance, Jonathan Samuels has said the “irrational exuberance” in the market appears to have subsided. “New lending rules introduced earlier in the year clearly triggered a slowdown”
The Bank of England is expected to publish its recommendations on new leverage ratios for lenders this Friday with caps on their lending relative to their capital.
Another lender, the chief executive of Lloyds Banking Group, warned that this could push up the cost of mortgages, and that lending has fallen to its lowest since January at 1.8 billion pounds.
Written by: The Team | On: October 30, 2014