Permission for a mortgage in Britain fell further in December, as reported today, British Bankers Association (BBA). This suggests that the UK housing market is waiting for another period of weakness.
Permission to purchase homes fell to 28,726 from 29,696, in November, according to the BBA. In monetary terms, the number was stg4.095 billion against stg4.415 billion in November.
Volumes permits remortgage declined to 24,466 against 26,444 in November. Net lending secured by housing grew by stg880 million
Director of the statistical department of the British Bankers Association, David Dooks, said:
Net lending to "major banks" rose stg20 billion in 2010, lending to all other organizations decreased by approximately stg12 billion in mortgage demand was weak throughout 2010, the index permits mortgages fell by 10% compared to 2009-m .
"The demand for unsecured lending was too weak for the past year, net lending decreased by stg2 billion due to low demand in an uncertain job market and the economy as a whole."