Recently, there have been a string of new numbers pointing to a weakening UK property market. The latest was mortgage approvals. On a seasonally adjusted basis, approvals in December fell. Year on year, the flow of new credit to the housing market is down about £2 billion. That is a big number. In December 2009, monthly mortgage approvals were running at £8 billion; in December 2010, the number was just £6 billion.
Banks are again tightening credit. A new and more gentle credit crunch seems to be underway. It is less dramatic that the post-Lehman crunch. Nevertheless, it points to a further near term weakening of property prices.