September 25, 2008
UK Mortgage Approvals slump continues
The British Bankers Association ( BBA )has released data on mortgage approvals that shows that the UK housing sector is continuing in a downwards spiral. According to the BBA only 21,086 mortgages were issued in August. This represents the lowest total since 1997.
Home loans dropped by around 12,000 ,in comparison, to the average number of those approved over the last 6 months.
The BBA commented that the decline in the housing market’s fortunes can be blamed ,in part, on the Government’s delay in addressing the issue of stamp duty. The association added that the credit crunch had placed substantial financial pressures on families and when coupled with the fact that lenders are imposing stricter lending criteria, has resulted in the suppression of the sector.
Previously, the Government had announced that it would suspend the stamp duty on houses ,that are priced at £175,000 or under, for one year . However, market analysts believe that the Government acted too little and far too late to arrest the housing slump.