Supply issues persist in UK Housing Market
- December sees 68,218 house purchase approvals, down 3.1% from 70,410 house purchase approvals in November
- Average monthly approvals across H2 2015 stand at 69,572, higher than H1 average of 64,047
- On an annual basis, house purchase approvals climb 12.5% – from 60,650 in December 2014
- Small-deposit lending stagnates towards the end of the year, remaining at 16.3% of total lending and comprising just 11,120 loans – as London continues to be a challenge for first-time buyers
House purchase lending dropped towards the end of 2015, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor, and lack of supply in some areas could be a component in these reduced loan numbers.
Overall house purchase approvals, on a seasonally adjusted basis, decreased to 68,218 in December – falling 3.1% month-on-month from 70,410 in November. This slight dip comes as pressures of supply, higher prices and recent legislative measures are thought by some to be impacting upon the property market. However, the second half of the year has seen a strong monthly average of 69,572 approvals, compared to 64,047 across the first six months of 2015 – as lenders show plenty of support for credit-worthy borrowers.
Annually, house purchase lending has risen 12.5% since November 2014 when loans totalled 60,650 – with lending levels fully recovering since last year, alongside a returning confidence.