The number of new home loan agreements has fallen again, suggesting a weakening of demand in the property market.
The number of mortgages approved in November fell to 59,029, the lowest since June 2013and down from October’s 59,511. The figure also represented a 23% fall from the 74-month high of 76,611 approvals last January.
Tougher lending criteria introduced in April may have put off some applicants, according to analysts, while raised rates from lenders may have slowed the flow of applications.Recent changes to stamp duty are not thought to have a major impact on house-buying activity.
Nationwide earlier this week said that house prices had risen by just 0.2% in December, reducing the annual rise for 2014 to 7.2% from the 11.8% registered in June. Government estimates predict a price rise of 7.4% this year, slowing to 5.9% in 2016 and 5.8% in 2017.
The RICS is more cautious, anticipating a 3% increase in house prices in 2015.
Daily Telegraph, 37
Times, 45
FT Weekend, 2
