Wednesday, 30 January 2008

Mortgage approvals come crashing down.

UK mortgage approvals are crashing like a stone. In December, approvals fell to their lowest level since 1995.

According to the Bank of England, just 73,000 house purchase loans were approved. The average approval rate during the first half of 2007 was around 100,000 a month.

Let is repeat the golden rule of real estate:

"Credit availability determines house prices"

No credit growth, no house price growth.

1 comment:

Anonymous said...

Actually, only 50,000 new mortgages were approved (according to the Bank of England) in December. 73,000 is the seasonally adjusted number that takes account of December being a slow month most years.

The situation is _even_ worse.