Mortgage Market Sky Rockets
2 minute read
In 2008 the UK entered it the deepest recession since the war. Manufacturing output had declined by 7% by the end of 2008. With unemployment rising to 8.1% (2.57m people) in August 2011; this was the highest level since 1994. Towards the end of 2007 the housing market peaked and then fell. Sending the housing market spiralling down for 7 years. Then in the third quarter of this year the number and value of mortgages taken out by buyers reached its highest level since 2007. From July to September this year 188,000 mortgages have been taken out, worth a total of £32.4bn were given to first-time buyers and home movers. Despite the peak, the numbers are still considerably lower than the 223,900 recorded in the later end of 2007, and lower than any quarter between 1996 and 2008. The CML’s figures show that the number of loans made to first-time buyers and those moving up the housing ladder both fell for a second month running in September as the housing market cooled. Despite a survey carried out by the Royal Institution of Chartered Surveyors (RICS) in August expecting to indicate that the numbers of houses on the market now exceeds the number of buyers, houses prices are likely to still continue to rise for the next year. What does this mean for the mortgage market? The market has slowed down in the last two months, but supply now exceeds demand and house prices look like they will continue to rise.