Encouraging House Market News

There could be some good news on the house market front, as figures just released, suggest that the market is beginning to stabilise, as the figures show that the level of approved loans, that customers have not took up, have not fallen as sharply in the month of July, as they have done, over the last year these loans were seeing a massive annual decline rate of around the 20% mark in June, so the 6% that has been quoted for July has seen a marked improvement.

What we should do though is not to go into a comfort zone and think that with this news that the market is stabilizing, it is only suggesting that it at the moment and it is far to early to know if this is going to continue.

Also many investors have been sitting on their hands waiting to see if and when the Bank of England would be announcing the expected interest rate cuts, which duly arrived in August.

This July has had the lowest level of decline in approved mortgage loans, since they started to fall over the last year, the British Bankers Association has said and that they see the British housing market as the gauge on which the public are spending their cash.

The BBA also undisclosed that the level of approvals in the month of July, were almost 7.5% lower than in June, which saw the record high for the last year, of 70,750 approved loans, which were averaging out at about £132,700 per loan, up 9% on a year ago and is thought that this was down to, people who were in need of a bigger property, as the numbers of first time buyers has fallen quite drastically in recent months.

This could be one of the main reasons, if not the main reason that the housing market has seen such a low point in many a year, as most know that the first time buyer is the most important link in the housing buying chain, as they free up the seller to buy the larger home that they want, which in turn leads to a domino effect going through the whole market.

The BBA also said that our spending on the high street has also waned in recent months, with credit card sales, though not poor could only be given a modest tag, which has led to a fall in the retail sales, which have dropped 0.3% this month.