Banks approved 6% fewer house purchase mortgages in September than in August, with 17,000 would-be first-time buyers left out in the cold.
The figure of 33,130 house purchase approvals was, however, 8% higher than in September last year.
Figures from the British Bankers Association show that the number of remortgage approvals in September was also down on the August figure, by 8%, although about the same as in September 2010.
Despite the monthly dips in new approvals, banks’ gross mortgage lending totalled £8.4bn in September, up 7% on September 2010.
The BBA reports that growth in gross mortgage activity is being driven by the buy-to-let market.
David Dooks, statistics director, said: “A modest stimulus to gross mortgage lending is coming from the buy-to-let sector as rental yields continue to improve.”
Jonathan Moore, director of online rental accommodation website Easyroommate, said: “The recent improvement in gross lending may seem like welcome news to buyers, but the increase has more to do with buy-to-let landlords taking advantage of the current rental market than a much-needed surge in lending to first-time buyers.
“Strict lending criteria and absurdly high deposit requirements are continuing to keep mortgage finance out of the hands of the average first-timer, and this is flooding the private rented sector with demand.
“Each month there are 17,000 more frustrated buyers than before the downturn having to rely on rental accommodation because they are unable to buy.
“This is driving up competition for accommodation in both the flatshare sector and the wider rental market. For many investors, these conditions are too attractive to ignore, and we are seeing growing investment in buy-to-let.
“While this may well alleviate some of the pressure on the current stock of rental homes, the supply will have to increase at a much faster rate to match growing demand and limit further rent rises.”
Moore based his claim of 17,000 first-time buyers per month being left out in the cold on Council of Mortgage Lenders figures.
The CML says that in the 12 months to August an average of 15,800 first-time buyers a month secured mortgages, compared to an average of 33,100 a year between 2002 and 2007.
Richard Sexton, director of valuation firm e.surv chartered surveyors, said: “The mortgage market is doing its best to stagger on.
“The ailing economy is entering a state of rigor mortis, and the crisis afflicting Europe makes any resurrection of growth look unlikely.
“The temptation for lenders to pull back from the market and recoup equity over the winter is becoming overwhelming.
“First-time buyer numbers have fallen to their lowest since November 2010, and purchase approvals with a deposit of 25% fell to their lowest level in six months in September, both of which are tell-tale signs of a struggling mortgage market.
“Supply of credit is painfully restricted, meaning there is almost no margin for lenders to grow their loan books, so they are being understandably cautious and focusing on targeting borrowers with big deposits.”
Comments
Brian: rant may well be a "keyboard warrior" - but surely in no greater respect than you or I?
Otherwise, I sincerely believe, from what I have picked up on here and elsewhere, that you couldn't have described him any LESS accurately...
If my willingness to debate with rant is a sign of my ignorance... then on the basis that 'ignorance is bliss' I must be in ecstacy, mustn't I?
Unless you learn the objections, and learn how to handle them - then selling the product is more difficult. I would have to say that calling the prospective buyer an ignorant, scrounging idiot is not high on any list of objection handling technques I have ever read or used in training sessions...
Just an observation and all that.
I'd imagine some of the cheapest mortgage rates that have been seen for a while have played a role in the numbers here ticking up.
It's all smoke and mirrors though. This week's figures from the British Bankers' Association said that mortgage approvals dropped from 35,100 to 33,100 last month. That's pushing 6% down.
Why would anyone who actually knows what they are talking about want to discuss with you, who clearly is a fool and ignorant of the real world.
Come back when you have held a job, got away from benefits and contributed to the world , key board warrior? key board idiot!
SO... taking my own, slanted, biased and therefore totally incorrect view on this story -
* "The figure of 33,130 house purchase approvals was, however, 8% higher than in September last year."
Note the sixth last word. HIGHER.
* "...banks’ gross mortgage lending totalled £8.4bn in September, up 7% on September 2010."
Note the fifth last in the above. UP.
I know from bitter personal experience that FTBs cannot get onto the market. I am the proud father of two of them.
That to one side - not only does the market continue to survive (much to the annoyance of our HPC co-posters who will undoubtedly continue to read this story in the way THEY want it to be heard...) - it shows signs of improvement YoY.
Not an ounce of general tosspottery in sight... ;o)
Your ability to spot "general tosspottery" from a hundred miles away more than qualifies you though.
; )
Oh, I dunno about that, rant - you and I seem to manage pretty okay on your knowledge only... ;o)
You are right, someone wouldn't need any of those things to be an EA. It's more of a targeted message.
Should anybody, an EA or otherwise, want to try to meaningfully discuss the specific subject of current house prices (rather than Rightmove's fees etc), it might however be helpful for them to brush up on those points.
rant: "There are EAs here who post about house prices whilst admitting they don't follow the Halifax, Nationwide and Land Registry surveys, think £120,000 is a fair price for an apartment outside of London, don't understand the difference between real and nominal prices..."
Sorry, mate. How does ANY of the above define a good/bad Estate Agent? Or - what point does it serve to make in your argument?
'Surveys' are just that. A set of statistics (some of them fact; some science-fiction...) that one faction can get all moist over and the other looks for a counter-argument (...like WE all do all the time here... ;o) ).
In SOME areas, £120k might well be a fair price for an 'apartment'. Cheap, even. Most cities still have at least one sector or suburb where you couldn't pick one up for anywhere near that figure...
I don't give a stuff whether the price of 27 Acacia Avenue is "real" or "nominal". That's how much it is.
Ray wants to know what involvement you have in the property industry. Some would say "none whatsoever"; others would say different. Taking you as a (potential) buyer, then I would suggest it could be said that you have an EFFECT on the industry, by your action or inaction, rather than an involvement.
That being said - you have made it your business to know more than many, myself included, about the workings of booms; busts and the cycles they ride.
HOWEVER - this knowledge (or lack of it) would not stop me from selling homes on behalf of their current owners to people who wanted to buy them... so I guess ignorance ain't such a bad thing sometimes, matey! ;o)
lol, I know just pulling your leg
Didn't specifically have you in mind Wardy...
You up for fisty cuffs today Rant?
p.s Not in london but regulary sell 1 beds for over £120,000
There are EAs here who post about house prices whilst admitting they don't follow the Halifax, Nationwide and Land Registry surveys, think £120,000 is a fair price for an apartment outside of London, don't understand the difference between real and nominal prices and think a deposit for current prices can be saved for in around a year.
I'm not one of those.
@rantnrave
I would be interested to know if you are actually involved in the property industry and if so in what capacity and for how long. Why? Because it will help me to understand your "rantin & ravin" better and how much credence to attach to it.
We're all too busy trying the hairdryer game...
Meanwhile, back to the article, mortgage rates are starting to creep up in response to the banks facing higher borrowing costs:
http://www.dailymail.co.uk/money/mortgageshome/article-2053409/Bank-Scotland-The-Mortgage-Business-raises-SVR-175-000-borrowers.html
It's not all bad news for those 17,000 FTBers.
Great news for Rant and his band of HPC'ers,
Government set to intervene and fix all house prices by law
All 1 bed flats and houses £5,000
All 2 bed flats and houses £10,000
All 3 bed flats and houses £15,000
All 4 bed or more flats and houses £20,000
It will be law for owners that if someone wants to buy your house you MUST sell it to them, you cannot refuse.
If you find anyone not willing to comply with this new legislation please call Mr Grant Shapps directly and he will arrange for them to be evicted.
That should get the market going.
U.K. Home Prices to Plunge Most Since 2008 Slump, Knight Frank Predicts:
http://www.bloomberg.com/news/2011-10-25/u-k-home-prices-to-plunge-most-since-2008-slump-knight-frank-predicts.html
I think the first time numbers will fall further. The economy is getting worse with people having less money to spend on housing. Now even Knight Frank are saying prices will fall 5% next year. Many first time buyers will just hold out longer before they buy.
How about this one - alternative reading: 17,000 FTBs a month saved from certain negative equity
Choppy, choppy, come on the HPC nutters post ya twaddle, lets start they day with a good laugh at your originality.