Commenting on the latest figures from the BBA, Ratcliffe said: “The mortgage approval figures released from the British Bankers’ Association (BBA), showed only 22,448 mortgage approvals for house purchases in July. If this low level continues it would only equate to approximately 250,000 approvals per year. This represents nearly an 80% drop in transactions on last year. With transactions at an historic low level the only way now can be up.
“The Government must step in and take action, before the economy crumbles. If it fails to act, it will ultimately be responsible for its own demise. Action is needed now not in the autumn, the longer the Government waits the worse the economic situation will get. The housing industry is a vital part of the economy and it cannot sustain this low level of trade.
“Housebuilders are on their knees, if no new homes are sold, no properties will be built and the Governments plans for the housing industry will be in tatters. The Office for National Statistics has revealed a huge downturn in construction growth, falling by 1.1% in the second quarter of 2008.
“If the Government takes action now to introduce a stamp duty holiday and implements a loan deposit scheme for first time buyers, this will help buyers re-enter the market and builders will look to recommence construction.”
