Mortgage Approvals Lowest In 5 Years

31 Jan 2005

Figures from the British Bankers Association reveal that the number of mortgage approvals for property purchase in December has dropped by 10% since last year to a five year low, are 3% lower than the previous month, and confirms a significant slowdown in the property market.

The figures are not seasonally-adjusted however, and the industry is now waiting for adjusted figures to be released by the Bank of England next week to get a clearer picture of the mortgage market.

David Dooks, BBA director of statistics, said; "This time of year sees a seasonal weakness in loan demand, but with approval volumes running well below those in the same month a year earlier, mortgage lending is expected to remain relatively subdued in the near-term."

Last week property website Hometrack said that house prices had dropped again in January by 0.4%, which is the seventh consecutive decrease in property prices.

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