Monday, 1 December 2008

What a difference a year makes

In October, UK Banks approved just 32 thousand mortgages. 12 months earlier they approved 88 thousand. In one short year, approvals are down 63 percent.

No credit, no housing bubble.


JKA on Economics UK said...

No credit, no bubble, no market. Net new lending was down 96% in October and will be negative in 2009 according to the Crosby report.

Anonymous said...

Sky News says: "Just £459m was lent during October, well down on September's £1.49bn and only 6% of the level for October 2007."

I think that means we should dispense with 96% of the jobs in mortgage lending, don't you?

I expect that's a million or two...

B. in C.

electro-kevin said...

B-b-b-but Ajay Ahuja (property magnate) says:

The property slump is over. I am fairly sure of this because the following will happen over the next 6 months:

On December the 4th interest rates will be dropped to either 2.25% or below.
Buy to let borrowing rates will be around 4%.
Property prices for bottom end properties (less than £100k purchase price) will start to look attractive to investors as yields are 8%+.
Investors like me and probably you will start to buy like mad as prices become too tempting.
As we start to buy, and bid against each other, prices start to edge up as we become comfortable with low borrowing costs.
Since the bottom end of the property market make up the majority of the average house price statistic the Halifax and Nationwide start to report a slight increase in house prices in the month of April 2009.
This statistic is further confirmed by Rightmove and Hometrack.
Land Registry figures come out for Quarter 1 of 2009 in May 2009 reporting a slight increase in house prices.
Mass media start running the front page as "Property Slump Over" and pundits all say now because it is cheaper to buy than to rent, people should start buying.
The first time buyers come flooding back to the property market in their herds trampling all over us investors and we say good bye to those lovely yields!
So. Are you going to help the property market recover? It is from December 1st 2008 till May 2009 where the window of opportunity exists for us. I suggest you:

a) get your credit rating sorted and start speaking to your broker, lender or bank manager.

b) Start looking! If you need help where to look contact us!

2009 is going to make a few people very rich. I hope you are one of them.

electro-kevin said...

Ajay specialises in DHSS lettings btw.

Mitch said...

Wonder if Ajay would like to buy some "magic" beans they have a AAA rating for growth.