Mortgage Approvals rose almost 20% in UK
Hometrack have given some good news to the uk mortgage industry. In their latest report they have revealed that the number of home buyers rose by 20% last month. Although the house prices continue to fall but the homes were sold more quickly than the previous month.
This report was further reinforced by figures from Bank of England which showed mortgage approvals for homebuyers rising by a fifth as well.
However, Hometrack has warned that these gains could easily be wiped out by the effect weak economic growth, rising unemployment and poor availability of mortgages.
It was also revealed that the property prices in January dropped 0.6%, their lowest monthly fall since May last year. The annual rate of fall in the property prices is now 10.3%.
Staying on the positive note, the lending statistics of Banks have shown almost 38,000 home loans approved for property purchases last month, compared to a six month average of 31,500.
As the Bank of England base rate is at its lowest for many decades, the borrowers are reaping the benefits of unprecedented low mortgage rates, especially people who have got trackers. As a result remortgages fell by 4% in February to just under 33,000 and remain considerably below 53,000.
Andrew Montlake who is a director at independent mortgage broker, Coreco, said: 'As mortgage approvals happen ahead of property transactions, these figures lend credence to the claim that the bottom of the property market is fast approaching. With many people now looking to take advantage of low house prices and mortgage rates, the only thing that is holding them back is the banks themselves'.
He also said that the draconian lending criteria being adhered to by the banks has to be relaxed. The government has to push the banks to do this if it is genuinely serious about helping first-time buyers and borrowers in general. The banks need to act now and bring in the competitive, sensible lending up to 90% loan-to-value mark to boost confidence in the market.
Hometrack ran a poll of around 1,800 agents and surveyors across England and Wales and concluded that the rise was due to buyers looking for bargains and this has helped the market to pickup a bit.
There has been an increase in the number of buyers registering with estate agents for the second month in a row, rising by 9% following February's jump of 17%. There was also a 19% increase in sales agreed, after sales levels soared by 36% the previous month. However Hometrack has added that volumes still remained well down on normal levels.
Analysts say that these figures offer a first indication that sinking housing market may just have bottomed out. Howard Archer of HIS Global Insight says: 'Any recovery was likely to be gradual and fitful for some time to come.'
This report was further reinforced by figures from Bank of England which showed mortgage approvals for homebuyers rising by a fifth as well.
However, Hometrack has warned that these gains could easily be wiped out by the effect weak economic growth, rising unemployment and poor availability of mortgages.
It was also revealed that the property prices in January dropped 0.6%, their lowest monthly fall since May last year. The annual rate of fall in the property prices is now 10.3%.
Staying on the positive note, the lending statistics of Banks have shown almost 38,000 home loans approved for property purchases last month, compared to a six month average of 31,500.
As the Bank of England base rate is at its lowest for many decades, the borrowers are reaping the benefits of unprecedented low mortgage rates, especially people who have got trackers. As a result remortgages fell by 4% in February to just under 33,000 and remain considerably below 53,000.
Andrew Montlake who is a director at independent mortgage broker, Coreco, said: 'As mortgage approvals happen ahead of property transactions, these figures lend credence to the claim that the bottom of the property market is fast approaching. With many people now looking to take advantage of low house prices and mortgage rates, the only thing that is holding them back is the banks themselves'.
He also said that the draconian lending criteria being adhered to by the banks has to be relaxed. The government has to push the banks to do this if it is genuinely serious about helping first-time buyers and borrowers in general. The banks need to act now and bring in the competitive, sensible lending up to 90% loan-to-value mark to boost confidence in the market.
Hometrack ran a poll of around 1,800 agents and surveyors across England and Wales and concluded that the rise was due to buyers looking for bargains and this has helped the market to pickup a bit.
There has been an increase in the number of buyers registering with estate agents for the second month in a row, rising by 9% following February's jump of 17%. There was also a 19% increase in sales agreed, after sales levels soared by 36% the previous month. However Hometrack has added that volumes still remained well down on normal levels.
Analysts say that these figures offer a first indication that sinking housing market may just have bottomed out. Howard Archer of HIS Global Insight says: 'Any recovery was likely to be gradual and fitful for some time to come.'
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