House Price Pressure

Bank of England statistics revealed the number of mortgages being approved continued to fall in October.  It has been stated that the lack of approvals will keep a pressure on house prices in the mid-term. 

47,185 loans were approved for purchasing a property during the month - the lowest level since February 2010.  This is well below the 70,000 to 80,000 approvals a month that experts believe give a stable market.

Hometrack said house prices fell for the fifth consecutive month in November.  Buyers actively looking dropped at its fastest pace for nearly two years.

Supply far outweighed demand natioanlly as sellers continuing to put their properties on to the market.

Chief UK and European economist at IHS Global Insight, Howard Archer said: "The Bank of England mortgage approvals data shows that housing market activity remains marooned in the doldrums, which seems highly likely to maintain downward pressure on prices.

'The data reinforces our belief that house prices will trend down to lose around 10% from their peak 2010 levels by the end of 2011.'