Nicholas Leeming of Propertyfinder.com commented on the BoE figures showing mortgage approval volumes are down:
“Evidence is piling up that the housing market is cooling. First confidence began to slip as interest rates rose, then evidence of slowing price growth emerged and now it is quite clear that appetite for mortgage borrowing is waning too. All of this pre-dates the latest interest rate increase and the jump in supply of homes for sale ahead of the abortive attempt to introduce HIPs. Greater supply and lower demand are likely to accelerate the cooling through the summer. It is quite clear that another interest rate increase is unnecessary. We need a period of stability now to allow the market to find its new level.”
David Stubbs, RICS senior economist said:
"Activity in the housing market continues to subside. Housing affordability for first time buyers has been worsened by recent interest rate increases, and the prospect of further rises in coming months is sapping market sentiment. The result is weaker demand, with mortgage approvals now down 16% from their peak in November. Activity in the housing market will continue to decline as the year progresses. However, It would take a significant slow down in economic growth to produce steeper declines."
