The value of new home loans being offered to home buyers fell significantly last month according to new figures. The data from the Bank of England revealed that loans totalling £459 million were offered in October, compared to the £1.49 billion approved in September. It is the second lowest amount on record since 1993, demonstrating the caution within the UK housing market at present.
The fall came despite the total number of deals offered in October – 32,000 – being at a similar level to the previous three months, albeit down by almost two thirds on the 88,000 approvals in the same month in 2007. Experts have said that the current month-on-month decrease of just 1,000 may indicate that the housing market is close to reaching its lowest ebb.
The revelation piles further pressure on the Bank of England to further reduce interest rates, having dramatically slashed rates by 1.5 per cent only last month. However, chief economist at the Royal Institution of Chartered Surveyor, Simon Rubinsohn, said that the cuts had yet to be passed on to home buyers. Mr Rubinsohn said, ‘ First-time buyers and homeowners alike are still struggling to buy property as banks are still requesting sizeable deposits, further stagnating the property market. This will continue unless banks begin to loosen up on lending conditions.’ onths.
Pressure for Bank of England to Cut Rates Further Following Home Loan Figures
Financial Services > e-banking > Banking news
Pressure for Bank of England to Cut Rates Further Following Home Loan Figures
Wed, 03 Dec 2008
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