The Telegraph have reported that mortgage approvals for new homes fell for the fourth consecutive month in May 2014, to its lowest level since August 2013, a further sign that the housing market is beginning to cool.
New data from the British Banking Association showed that mortgage lending grew by £1.2bn in May, down from a £1.3bn in April with mortgage approvals totaled 41,757 in May down from 41,834 in April.
“Our figures indicate that the heat appears to be coming out of the housing market,” said the BBA’s chief economist Richard Woolhouse. “These are the first mortgage approval figures we have seen since the introduction of the Mortgage Market Review, so it is significant they have fallen for the fourth row in a month. The figures follow news from the Bank of England that while demand for mortgages rose in the second quarter and is expected to increase again between July and September, lenders intend to keep the availability of mortgage funds unchanged in the third quarter.
Although, we at Belvoir! Sheffield Estate Agency haven’t experienced a downturm yet, with lots of properties coming onto the market and lots of interest being shown be Sheffield house hunters, a cooling of the market is not a bad thing.
The key driver for this cooling is the tightening up by mortgage lenders of mortgage application requirements. This can only be a good thing as it helps to ensure that first time buyers can actually afford the mortgages that they apply for and can only create a healthier and credible market, providing sustained and solid growth. Helping to control the huge demand for housing of all shapes and sizes that we are experiencing here in Sheffield.
Belvoir! Sheffield is the one stop specialist for Sales and Residential Lettings and Property Management, Investment and Wealth Management Advice, Fit-outs and Renovations, Property Insurances and Mortgages. Belvoir! Sheffield was the winner of the Belvoir Franchise of the Year Award for 2013 and is a multi award winning agency.
For more information, please visit https://www.belvoir.co.uk/sheffield-estate-agents/ or call 0114 331 0033. Alternatively, please email rick@belvoirsheffield.com
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