Housing Market Remains Flat
Figures released today show that activity in the housing market in May failed to increase with new mortgage approvals staying broadly the same.
A total of 49,815 mortgages were approved in May, a fall from the 6-month average and the November 2009 peak of 59,338.
The slow start to the year for the housing market had been explained by the end of the stamp duty holiday, severe winter weather and uncertainty caused by the general election and subsequent emergency budget.
However, with these factors now out the way, many observers are surprised at the sluggishness of the market.
Howard Archer, chief UK and European economist at IHS Global Insight, commented: “The Bank of England reported that mortgage approvals were essentially only stable at a muted level in May, thereby reinforcing the impression that housing market activity is finding it hard to regain momentum after faltering at the start of 2010.
“The data … provides further support to our suspicion that house prices will struggle to make significant gains over the coming months.”
Whilst disappointing for estate agents selling property, those working in the letting agency industry will see it as another strong factor in that market’s stability where there are high levels of demand at present.
