Mortgage lenders approvals slumped to a record low in July as the “Credit Crunch” bit harder than ever. Mortgage approvals sank to 33,000, the lowest reading since the series began in April 1993, from a downwardly revised 35,000 in June.
Yet net consumer lending came in stronger than expected, with over 4.3 billion in July from 4.0 billion in June.
Yet net consumer lending came in stronger than expected, with over 4.3 billion in July from 4.0 billion in June.
The Bank of England released figures to show the credit crisis and economic uncertainty is having a definite effect on the UK housing market.
The housing market is set to have further steep falls in house prices over the coming months as consumer confidence is currently low in the UK and explains the ‘distress borrowing’.
Interestingly though, the U.K. government is expected to unveil a package of measures in the coming days to support the ailing housing market. These could include the buying up by local government of repossessed or unsold homes, financial help for struggling borrowers and a postponement of stamp duty. This is unlikely to spark a dramatic turn around, though this is worth keeping an eye on
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