Number Of Mortgage Approvals Slowing Down

Oct 14, 2014

According to the latest figures from the Bank of England, mortgage approvals have eased off for the second month running in August. Could this be evidence of a slowdown in the property market?

An article I came across on The Guardian website today reveals that mortgage approvals for homes have slipped back to 64,212 from 66,100 (July) and 69,923 (June). Back in January, the figure stood at 76,925.

The August figure of mortgage approvals still stands higher than the 61,914 count from May (when tighter mortgage rules had recently been introduced), but it does imply that the market is beginning to flatten out.

A Hometrack survey has also suggested that property price growth has slowed down, as prices didn’t rise for the first time in a year and a half. Hometrack commented that this could be down to the fact that potential buyers are concerned about a property price bubble and a potential rise in interest rates.

Chief UK and European economist at IHS Global Insight, Howard Archer, commented that prices are finally beginning to rise at a “more restrained” rate over the coming months, and are starting to moderate after the highs of earlier in the year. The forecasted month-on-month price increase for September stands at 0.5% – slightly lower than the 0.8% rise for August.

Have you noticed a plateau beginning to emerge on the mortgage-approval front? And are you expecting to see house prices even out after rocketing, as they were earlier this year?