Is the housing market recovering?
Posted on 23/07/2009
A news story run by the Telegraph paper recently claimed that mortgage approvals were on the rise and the construction sector was starting to stabilize. On face value this seems like the perfect catalyst for improvement in the property market. After all the stabilization of the construction sector is vital for new property projects to grow while a rise in mortgage approvals could signal an increase in demand for property.
The Bank of England released figures that indicate an increase in mortgage approvals for the fourth month this year. Mortgage lending had also reaches a massive high of 43,201. It was previously thought that this would rise to around the 41,000 mark.
The figures look promising in light of recent events. It is however very different from just 20 months ago when mortgage approvals were above the 100,000 mark. In the current situation coupled with more stringent mortgage approval rules it is likely that the figures won’t reach the high enjoyed back in 2007.
Whilst the Bank of England continues to keep a low base interest rate the above figures will continue to rise.
Want to make more sense of the current financial events affecting the property markets? Get in touch with a Clear Lets representative for a free consultation.