‘Good times round the corner for UK property market’
August 26, 2009 at 1:51 pm
The end of June brought some much-needed good news for the UK property market and increased speculation that we may be coming out the other side of the worst of the current global economic slump. The Bank of England released statistics showing that banks in Britain had lent 47,584 mortgages in June. This represented a substantial rise of 3,415 (44,169) on the month before, exceeding economists’ expectations. The figure is the highest in 14 months and signals a rise in confidence in both the lenders, and those lending.
Whilst economists are naturally remaining wary and continue to advise caution regarding over-optimism, there is definitely an expectation and sense of hope within the banking world that things are finally starting to improve.
House prices held their value for the third straight month in July offering a level of economic stability which many will find encouraging. George Buckley at Deutsche Bank AG felt confident enough to say, “we’re expecting to see mortgage approvals rise as the banking crisis begins to ameliorate”.
The news followed figures released earlier in July by the Land Registry, which showed that house prices rose between May and June for the first time in 18 months. The total value of mortgages lent in June was £12.3 billion (up 17% on May), which represents a six-month high.
“It is mortgage approvals that are seen as the key forward looking indicator for housing market activity. The Bank of England data indicates that the ongoing gradual upward trend in housing market activity remains intact,” offered Howard Archer at IHS Insight.
