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Mortgage approvals edge up but lending capacity could hamper growth
03/06/2009
Mortgage approvals for house purchases in Northern Ireland and the rest of the UK continued to rise last month, according to data from the Bank of England, which showed the figure hitting 43,000, up 3,000 on March.
Despite the increase, which is the highest seen since April 2008, last month's figures are still more than 20 per cent lower than last year, which saw the same month reach 55,000 approvals.
However, this figure indicates a 57 per cent increase from the 27,500 recorded in November, showing the market is indeed rapidly picking up.
There are, however, factors that still pose a threat to the growth, according to Council of Mortgage Lenders economist Paul Samter.
"Limited lending capacity and the impact of further job losses are likely to act as a ceiling for how far the improvement can continue, although there could be further modest rises in the coming months," he said.
As the market slowly picks up consumers are advised to ensure they know the true value of their properties after recent research from Abbey Mortgages found that many were overvaluing their investments.
Christine Farrell, head of the residential property department at Wilson Nesbitt Solicitors, added that "property prices have dropped to very attactive levels for first time buyers and while the strategy has seemingly been to wait and see if they could fall further, it would appear that people are slowly gaining confidence that prices are levelling out and that now is the time to buy".
She added: "An increasing willingness to lend from the Banks is also playing a part in the stabilising of the property market."
Visit our residential property services page
Despite the increase, which is the highest seen since April 2008, last month's figures are still more than 20 per cent lower than last year, which saw the same month reach 55,000 approvals.
However, this figure indicates a 57 per cent increase from the 27,500 recorded in November, showing the market is indeed rapidly picking up.
There are, however, factors that still pose a threat to the growth, according to Council of Mortgage Lenders economist Paul Samter.
"Limited lending capacity and the impact of further job losses are likely to act as a ceiling for how far the improvement can continue, although there could be further modest rises in the coming months," he said.
As the market slowly picks up consumers are advised to ensure they know the true value of their properties after recent research from Abbey Mortgages found that many were overvaluing their investments.
Christine Farrell, head of the residential property department at Wilson Nesbitt Solicitors, added that "property prices have dropped to very attactive levels for first time buyers and while the strategy has seemingly been to wait and see if they could fall further, it would appear that people are slowly gaining confidence that prices are levelling out and that now is the time to buy".
She added: "An increasing willingness to lend from the Banks is also playing a part in the stabilising of the property market."
Visit our residential property services page
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