21st January 2016
Mortgage approvals up by 12.5% last year is a good sign for 2016
Mortgage approvals rose by 12.5% in the year to November 2015 with only a slight dip in December according to a new survey.
There was also a huge 32 per cent increase in ‘small-deposit lending‘- loans to buyers with deposits of 15% or less of their properties’ value. Although this also fell slightly at the end of the year.
Chartered surveyors e.surv found that the second half of 2015 saw a strong monthly average of 69,572 mortgages being approved by UK lenders – which is up around 9,000 per month from 2014.
But e-surv’s director, Richard Sefton, said he believed the December dip – of 3.1% in the number of approvals – was largely down to a shortage of suitable property on the market.
“House purchase lending has been rejuvenated over the past year,” said Mr Sefton.
But he added: “In order to properly address supply shortages and champion first-time buyers, new entry-level homes need to be built, and as quickly as possible.”
In a separate report, The Office for National Statistics reported that house prices across the UK accelerated in the year to November, rising 7.7% on average, but with a rise of 10.2% in the East of England and 9.8 % in London and the South East. Prices in Croydon rose by 16.1% in 2015 – the six highest percentage rise in the country.