19
Jun
Mortgage Review
As we enter into the sunnier months of the year the UK property
market remains steady in light of recent reports of lower mortgage
approvals and the launch of the Mortgage Market Review. The latest
statistics from the British Banker’s Association shows that
the overall value of mortgage borrowing continues to increase;
reaching a six year high, but the number of mortgage approvals has
fallen to a three month low. When reviewing the 3 month period,
national data recorded by the Agency Express Property Activity
Index indicates that figures are not yet heavily impacted by the
MMR and that properties ‘Sold’ nationally have
marginally decreased by -0.20%. While the outcome of fewer mortgage
approvals and the MMR process may take a few months to show full
effect on the market, the latest month on month figures from
Property Activity Index remain stable. Regional month on month data
recorded by index highlights London as a top performer, reporting a
vigorous +28.40% increase in new listings ‘For Sale’
and a +2.20% increase in properties ‘Sold’. However
over a three month average properties ‘Sold’ declined
by -4.20% which could be reflective of inflated prices and the low
uptake in the ‘Help to Buy‘ incentive within the
capital, reported at only 0.6%. Looking at performance across the
rest of the UK, a further five regions recorded by the Property
Activity Index report increases in properties ‘Sold’.
Prominent performer Central England records their best figures for
properties ‘Sold’ in May since the Property Activity
Index’s first records in 2007; rising by +18.50%. The East
Midlands rose by +7.90%, London by +2.20%, Scotland by +0.80% and
the South West by +8.60%. Whereas this month’s largest
declines were made by the South East recording their first drop in
four consecutive months; falling by -4.60% on properties
‘Sold’ and by -3.40% in new listings ‘For
Sale’.