| Fears over the state of the UK housing market | | | | added. |
| are on the rise, prompted by the announcement | | | | In support of the BBA statistics, a recent survey |
| from the British Bankers' Association that | | | | by the Royal Institute of Chartered Surveyors |
| mortgage approvals for September fell 14% | | | | has highlighted prices falling at their fastest rate in |
| compared to August. | | | | two years. This comes on top of comments |
| Total mortgage approvals for the month of | | | | from Bank of England Monetary Policy Committee |
| September 2007 for BBA members were tallied | | | | member Kate Barker suggesting that the housing |
| at 52,685, significantly down on the 61,051 | | | | market is overvalued, and could be affected by a |
| recorded in August, and weighing in at 27% lower | | | | shift in people's perceptions of the market, borne |
| than the same month last year. Indeed, the | | | | out by the uncertainty in the buy-to-let sector. |
| number of September approvals was at its | | | | Lehman Brothers mortgage expert Peter Newland |
| lowest since 2000. Much importance is placed on | | | | is anticipating a decline in overall demand for |
| the number of UK mortgages advanced in a | | | | mortgage approval to be reflected in the official |
| month as they are a key indicator of the state of | | | | figures published by the Bank of England in early |
| the market; a decline suggests that house prices | | | | November. He expects a drop from the August |
| will soon follow the downward trend. | | | | figure of 109,000 to around 100,000 for the |
| The director of statistics for the BBA, David | | | | whole market in September. He said: "We expect |
| Dooks said: "Lower amounts of new mortgage | | | | mortgage demand, as well as other indicators to |
| lending combined with fewer approved house | | | | reflect a further slowing of the housing market in |
| purchase loans signal a weaker outlook for the | | | | the coming months, to be followed by a sharp |
| mortgage market, especially if loan supply is | | | | slowdown in house price inflation in 2008. |
| reduced following the recent financial market | | | | "If we compare mortgages granted in September |
| difficulties and costs of borrowing remain at | | | | 2007 to the same time last year, then the |
| current levels. | | | | amount of mortgages approved has significantly |
| "There was a small increase in net borrowing | | | | declined, but whether it is just a short-term dip or |
| during September, alongside a similar increase in | | | | whether it will bounce back depends on a number |
| overdrafts and loans, but overall demand for | | | | of factors, including overcoming uncertainty over |
| unsecured lending continues to remain weak." He | | | | house price inflation. |