House prices in Britain plummeted after the collapse of mortgage lending more than a quarter. Experts warn that the level of monthly transactions in the mortgage market fell to its lowest in over the last decade. The number of deals dropped to 31.1 thousand in September, which is 26% lower than a year earlier.
Moreover, it is significantly below the average number of mortgage deals are approved monthly by three or four years ago, when they ranged at about 55-thousand. According to the latest British Bankers 'Association (British Bankers' Association, BBA), mortgage lending fell to 1.6 billion pounds in September, against 2.5 billion pounds in the previous month.
As the demand for new mortgages remains low, and goes a sharp fall in property prices. In September, the average home price dropped to 6000 pounds and was now 162,000. Increasing the supply and falling demand for residential property has pushed prices down by 3.6%. This is the biggest monthly fall in value since 1983, when such studies have been done before.