New home loans decrease again
The number of approved bank loans for the purpose of purchasing new homes has decreased for the second month running compared to equivalent months last year.
The decline in the number of new home loans is said to be further evidence of a slowdown in the UK housing market. However, the average loan approved is up almost 15% faired against the same time last year.
Demand for new homes is almost certainly decreasing; this could be due to a number of factors the most likely being a shortage in the housing market.
On the other side of the coin, first time buyers are finding it increasingly difficult to get onto the property ladder. The average house price in the UK is said to be over £200,000 up almost 30%. Sourcing home loans to fund 100% of the house value is unrealistic for many first time buyers, and in most cases impractical.
