Mortgage lending in January |
Information from the British Banker’s association shows that mortgage lending for house purchases in January was just slightly lower in number than January last year, but nearly 16% higher in value. The average rose from £126,800 to £146,700, while volume dropped from 45,039 to 44,804.
David Dooks, Statistics Director at the BBA, said “January saw a continued stable demand for mortgages. Actual borrowing on mortgages remains strong compared with this time last year, so the impact of higher interest rates has yet to feature.”
So at the moment it appears as if the three recent rises in the base rate have had little effect on general demand for property.
Property markets, as with other markets, rise and fall in value, but is a change in people’s living habits creating a permanent increase in property prices? Is the ratio of house prices to salaries rising for good? Let us know what you think.
February 28th, 2007 at 12:17 am
An awful lot more people seem to live on their own now – I guess that must mean more houses are used by the same amount of people, which pushes demand, and hence prices up. Its a shame – I want to by my first flat, but can’t afford the mortgage I would have to have.