Mortgage approval numbers 'to remain static'
Mortgage approval levels are expected to stay at the same level.
Monday, 05, Jul 2010 09:15
Mortgage approvals in the UK housing market are likely to remain static for some time yet, an expert has claimed.
The latest figures from the Bank of England have indicated that the number of mortgage approved for house purchase in the month of May was 49,815, consistent with the figure of 49,828 seen in April.
Reacting to the news, Timothy Lambert, head of consulting at Ducalian, said that his firm had expected high mortgage approvals at the start of the year to drop off and level out over the rest of 2010.
"The reasons are mainly due to economic uncertainty and rising unemployment as well as a large deficit that the government is working to tackle that will affect approvals for a lot of public sector workers," Mr Lambert explained.
He went on to say that Britain still has high property prices comparative to what the average person earns, but a correction in this anomaly would only come when supply and demand in the UK housing market are again equal.