Loans approved ‘stabilise at 120,000 a month’

The number of loans for homebuyers has plateaud at approximately 120,000, per month in the three months leading up to August, according to the latest data from the Bank of England.

House prices themselves rose by approximately one per cent in September and the average house price in England and Wales is about £20,000.

Earlier this week the monetary policy committee of the Bank of England voted to keep the base interest rate at 4.75 per cent.

Martin Ellis, the chief economist at Firstrung, said: “House prices rose by 1.0 per cent in September. The annual rate, however, eased for the third successive month to 8.0 per cent, the lowest rate since April 2006.

“We expect increased utility bills and higher interest rates to curb housing demand over the coming months, causing annual house price inflation to ease between now and the end of the year.”

Currently the level of inflation remains at 2.5 per cent buoyed by skyrocketing energy prices and lack of consumer confidence.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *