Thackray Williams

Mortgage approvals have risen for the last seven months according to figures released by the British Bankers’ Association (BBA).  Approvals in July stood at 38,181, a rise of 7.4% compared with June. The data suggests that the rise in activity and house prices could stretch into the autumn. However, the group warned that new lending was below seasonal expectations despite greater demand from borrowers.

Banks more cautious
The BBA's statistics director David Dooks said that banks were still being "more realistic" about how they should lend to compared with when the property boom was at its peak.  He said the ability of potential buyers to pay a deposit and long-term sustainability were key issues when banks decided whether to offer a mortgage. Property prices would also "stall" for some time.  "It is a different marketplace to where we have been in the past," he said.

Future building
Two of the UK's major housebuilders gave a guarded outlook regarding the property market.
Bovis Homes  reported a pre-tax loss of £8.6m in the six months to June 2009 and said it was worried about the potential impact of rising unemployment on house prices.
Although it said that the housing market had shown signs of stabilisation in the first half of 2009, it feared continued low levels of activity owing in part to the continued squeeze on mortgage availability.
John White Chairman of the UK’s largest housebuilder Persimmon which said that "Mortgage availability continues to be a concern". Future volume increases and price movements will be dependent upon mortgage availability, job prospects and the health of the general economy.”

For advice about a house sale or purchase including Home Information Packs contact  Kevin Gauntlett on Thackray Williams helpline 020 8777 6698 or email kevin.gauntlett@thackraywilliams.com