Mortgage approvals for house purchase approvals dropped sharply in February, according to the latest Bank of England figures.
Despite talk of first-time buyers rushing to purchase before the end of the Stamp Duty deadline, there were 48,986 loan approvals for house purchase in February, worth £7.1bn, almost 9,000 fewer than in January.
The figures also show that remortgaging approvals fell to 27,940 last month, totalling £3.8bn, after remortgage loans worth £4.3bn were approved in both the previous two months.
But sharply contrasting figures from the Building Societies Association show new mortgage approvals by mutuals were up 31% on February last year and up by 29% on the previous month, with £2.2bn of mortgage approvals in February.
Adrian Coles, director-general of the BSA, said: “Gross lending and new mortgage approvals by mutuals continued to rise year on year in February, despite growth across the market as a whole remaining relatively flat.
“The strong financial results released by a number of mutual lenders in recent months show that the sector is well positioned to offer market-leading products to its customers and are open for business.”
But he added: “Household finances remain under pressure. Rising unemployment, declining real incomes and a lower-for-longer base rate environment combine to make it difficult and less attractive for savers to increase their deposits in savings accounts.”
Meanwhile, a thoroughly muddling house price index from Nationwide – also published yesterday – said that house prices in March fell 1% on February.
A closer look at the figures revealed that average house prices were actually UP: in February, Nationwide put the average house price at £162,712 and for March it says the average house price is £163,327.
The commentary that went with the figures, from the bank’s economist Robert Gardner, insisted that house prices were 1% down on the month and 0.9% down on the year.
We asked Nationwide why it was saying house prices had gone down when its own figures showed them to have risen, and received a baffling answer about non-seasonal adjustment.
A spokesman said: “The House Price Index is seasonally adjusted to accommodate the seasonal impacts and variations that would otherwise skew the Index. However, the actual average price is not seasonally adjusted, so the figure we show is the actual average price for the period the Index covers.”
Whether they took account in February of the fact that this is a Leap Year is not recorded.
Just to add to the mix, the NAEA this morning claimed that sales in February rose to their highest for four months, with agents averaging seven sales during the month.
Comments
Keep renting Brit, many thanks for your money.
You forgot the big one which is even bigger than KFC by a long way The mighty Chicken Cottage which probably outnumbers KFC 3 to 1.
I wonder why the BOE now uses fried chicken shop for inflation indicators? ;)
Roll on further house price falls starting this May 2012.
FBA, you forgot to mention that because of FIFA inflation, goals scored this season are worth 5% less than season 2010-2011.
Good Lord,
I was looking at that statement and wondering what it would sound like if it had come from another source, like.... the football league. With the change of just a few key words from say..figures - goals, and alike... it reads like this:
Boy, it would be funny if Gary Lineker read this out.
A spokesman said: “The football league Index is seasonally adjusted to accommodate the seasonal impacts and variations that would otherwise skew the Ieague. However, the actual average goals are not seasonally adjusted, so the league we show is the actual average goals for the period the league covers.”
Ah, Mmmm, you're referring to the plethora of KFC knock-offs. Ostensibly called Favorite Chicken, Tennessee Chicken, Dixie Chicken et al. The ones staffed in the main by Afghan asylum seekers called Abdul?
In which case, i'll have a halal lamb burger, a portion of frozen chips and some year-old 7up please.
@SBC
No, no, no. You can have tango or 7up. Lukewarm.
@ Trevor
No, not at "The Chick Shop" you can't. You can have my pale imitations instead:
Chick burger - £2
Chick burger with chilli sauce - £2.20
Chick burger with some chips on top - £2.50
The Big Chick - £2.99
AND SO IT BEGINS
Sorry Jonnie, I just don't think your heart is really into this. Unless you can gaze wistfully at a majestic rainbow and think 'it's p*ssing down somewhere nearby" or wonder at the innocence of children as they play gayfully on a tree swing and think "there's a trip to A&E waiting to happen" then you're just not cut-out to be a HPCer.
Genetics or sumfink.
Big Trev, i'll have a McFlurry while you're at it please.
@Hmmmmm
Can I order a BBQ Rancher Twister Meal, a Wicked Zinger, a Big Daddy, a Popcorn Chicken Meal, a Supercharger and a Fillet Tower Burger? Thanks.
That's me sorted. Anyone else want anything?
God this is harder than I thought.
Friday, sunny, good week at work, Mrs has just rung to say we are meeting friends for drinks after work, its pay day, the staff are all bloody smiling and busy doing things I like such as booking in viewings for the weekend and flippin taking houses on the market (bastards) mate of mine has emailed to say he’s sorted tickets for a home game tomorrow…………
I really don’t know how you lot do it! – would anyone mind if I started Monday instead? I even ignored the panic buying thing with the petrol and now it turns out I was right and the strike is off so im fighting a good mood with the added problem of a huge lump of smugness about the idiots queuing up all day at Esso for nothing.
Jesus, I suppose the fact my house might be worth 1% less that last year, or seasonally adjusted to be worth it or however it works is something I could hold onto but my secretary is wearing the saucy shoes and short skirt combo I like so I its hard to feel sad about the 1% I think ive lost depending on the measure I use either.
Im sorry, I did try to be a bloody misery it’s not for me, ill give it another go Monday
Jonnie
"Or open a fried chicken outlet - they seem increasingly popular. Kids love chicken."
Brilliant, just brilliant. The fat heifers round my neck of the woods certainly enjoy a smelly-box of what they think is chicken. Preferably on a hot summer's day. On the bus.
Jonnie, give it a whirl and let us know how your new mind-set works out for you. You know you're fully there once your wife and kids have been ground down as well.
Ah ha! Jonnie Meldrew, brother of Victor Meldrew.
"I don't believe it."
Could be fun though
@Jonnie
Do your kids want any chicken?
@Mmmmmm
You know what im with you mate, sod it, lets put the old gloomy specs on and I also want to join the ranks of the most extreme HPC’ers and see loads of EA’s shut down, I hate the slimey little gits anyway, not sure why I defend them – I know im alright, a normal sort of chap, no sign written mini, no hair ‘products’ and as far from the stereo type as I need to be to stay credible and surprise people that meet me when they ask what I do for a living.
A few less EA offices on the high street wont hurt – let’s face it shops are dropping like flies, my kids can’t even buy a Playstation game locally as of last week so some more EA offices that are struggling and just taking up instructions the rest of could have wont change any ones life
So, I am now officially a bloody misery – I will have a negative outlook on all matters, I will find an angle on any article that spells doom and so on, im going to try it out for a week and see if I like it – sort of test drive the idea a bit and see how it feels.
Jonnie
Feels like it's gonna be a tough year.
- Stamp duty thingy will have borrowed some demand from the future.
- Credit conditions tightening further.
- Recent nice weather will have kept people away.
- Joe public glued to the sofa all summer watching our golden girl Jess Ennis.
- Then Euro 2012.
- Uk back in recession.
- After a couple of years of hot air, "The cuts" actually starting.
I might go back to college. Or open a fried chicken outlet - they seem increasingly popular. Kids love chicken.
How rediculous. Seasonally adjusting figures for a sensational headline is utterly pointless. They might as well adjust the figures to componsate for the property crash, which has otherwise skewed the index.