The Bank of England released figures showing that mortgage approvals fell in May.
According to the Bank, mortgage approvals for the month stood at 49,815, a fraction below the 49,828 in April and below analysts forecasts of 51,000.
The figure is also well below the 60,000 reached in November 2009 furthermore, they are 50% below levels experienced in 2006.
At the same time house prices according to the most comprehensive figures released by the Land Registry showed the average house declined 0.2% in May compared to April. After the recovery last year prices are still up 8.2% on a year ago, with London prices experiencing the largest recouvery rebounding 14.2% on the year.
However, with the effects of the austerity budget just around the corner landlords should be looking a getting a good deal before committing to a purchase.
In my view in the current climate if I couldn't get at least a 10% reduction on the asking price, I'd just walk away. There is plenty of property out there and a landlord should ensure that they don't start off their residential investment by over paying.
Property Hawk sticks to our original forecast for the housing market made back in 2008.
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Hello, thank you very much for mentioning Land Registry's House Price Index. However the average house price fell by 0.2% in May from April not a fall of 2% as stated in your article. If you would like to see our press release issued on 28June please follow this link:
ReplyDeletehttp://www1.landregistry.gov.uk/about_us/pressoffice/notices/?article_id=20701
Thank you very much
Jill Inglis
Press Officer
Land Registry
This has been changed. thanks Jill
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