National Homebuyers: 'Mortgage approvals fall'

Mortgage approvals plummeted in October, according to the latest figures from the Building Societies' Association (BSA).

[UKPRwire, Mon Nov 26 2007] The organisation has revealed that approvals slumped by 5.9 per cent month-on-month and 14 per cent year-on-year.

It is bad news if you are looking for someone to buy your property and Howard Archer from Global Insight says that things look set to continue to get worse.

"Evidence is now clearly mounting that housing market activity is cooling in the face of tighter lending practices and the heightened affordability pressure on house buyers coming from higher interest rates… and muted real disposable income growth is cooling," he commented.

"Going forward, housing demand seems set to lose further significant momentum.

Increased affordability pressures are making it increasingly difficult both for first-time buyers to get into the housing market and for existing house owners to trade up.

"Meanwhile, rising concerns about the overall state of the economy may well make people more unwilling to risk stretching themselves to buy a house. Furthermore, growing speculation that the housing market could see a sharp correction over the coming months may also increasingly deter potential house buyers," added Mr Archer.

Fast property sale expert Julian Kind adds, "The effect of the continuing lack of buyers will be felt strongest next year.

"Homeowners looking for a quick house sale have found they are largely out of luck in 2007, when the number of properties increases dramatically next year, while the number of buyers remains limited, the market will suffer further set-backs.

"People who need a quick sale need to look beyond the usual, draconian 'open market' route and consider the quick property sale option. National Homebuyers will purchase below the market value, but we will purchase within days. Thus, limiting any further potential reductions in the value of each property as it stalls on the open market".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm. The Sussex-based busines guarantees to make an offer to purchase any property in the UK for vendors who need a quick cash house sale.

Rightmove recently revealed that house prices fell by 0.7 per cent month-on-month in November.

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