As the Bank of England’s Monetary Policy Committee consider whether to increase base rate later this week, new figures from the bank show that mortgage approvals for house purchase has fallen for the second month in a row.
The bank’s money and credit report shows that the number of mortgage approvals for house purchase fell from 67,232 in August to 66,232 in September, prompting diverse views on what it means for the housing market.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “These official figures show, if proof were needed, that the housing market is continuing to display resilience in the face of political and economic uncertainty and not least the threat of an interest rate rise.
“Nevertheless, they are a little bit lower than we might have expected at this time of year but certainly showing no signs of major corrections.”
Howard Archer, chief economic advisor to the EY ITEM Club, says; “Housing market activity is being pressurised by weakened consumer purchasing power and substantial consumer wariness over engaging in major transactions.
“Additionally, housing market activity is likely to be hampered by fragile consumer confidence and a limited willingness to engage in major transactions.”