Debate House Prices
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Housing sales fall to their lowest on record

macaque_2
Posts: 2,439 Forumite
Buyers get to grips with reality while house sellers hold out for fantasy prices. There will be some interesting developments over the next 4 months.
Housing sales fall to their lowest on record
The contraction in UK mortgage lending since 2007 has been the most severe on record, the Council of Mortgage Lenders has said.
It also noted that housing transactions have fallen to their lowest level since records began................
..........The figure is lower than in any other year since 1974.
In the decade before 2008, loans for house purchase averaged almost 1.2 million a year, so the fall has been in excess of 50%.
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Comments
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This is an overall of the credit crunch (More QE anyone.) 2007-now
They are talking about constricted lending now (well since 2007), and transactions last year and 2008 (I presume because this year is not over)
Here is the full report, looks like the transaction bit was taken out of context a bit.
http://www.cml.org.uk/cml/publications/newsandviews/79/286The contraction in UK mortgage lending since 2007 has been the most severe on record. In both 2008 and 2009, fewer than 520,000 loans for house purchase were granted – lower than in any year since 1974. In the preceding decade, loans for house purchase averaged almost 1.2 million a year, so the fall has been in excess of 50%. Based on data to date, we expect to see lending for house purchase this year running at levels similar to 2008 and 2009.Not surprisingly given this background, housing transactions have fallen to their lowest level since current records began in 1978. The 770,000 transactions recorded in England and Wales in 2009 compares with 1,430,000 in 2007 and a low in the last housing market downturn of 1,134,000, recorded in 1995.
So it is not saying things have been bad recently, it is saying things have been bad for the last 2 years. It's evaluating the market over the last two years, not a snapshot of now.
I believe transactions have been higher this year than last year, but that is mainly due to cash buyers.
They want lending to free up basically.0
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