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About those averages
Shupufski
Posts: 43 Forumite
FROM EA TODAY
"Lending for house purchase slumped for the second successive month in October, it has been forecast.
Valuers e-surv say that house purchase approvals fell from 50,967 in September to 50,382 in October, a 1.1% decline. It said that first-time buyers and those with smaller deposits were hit worst.
The business, which is part of the LSL group, makes its monthly forecasts based on its own data, and claims to be within 1% of official figures when they are published.
The firm says that although house purchase mortgage approvals rose 6.7% year-on-year in October, the same month in 2010 was a weak comparator.
The latest month-on-month fall was triggered by the tightest lending conditions seen since February.
The average deposit size was 40% in October, with lower income buyers struggling to meet criteria for high LTV products. Loans with a deposit of 15% or under accounted for less than one tenth of all lending in October, compared to almost a quarter in 2007.
e-surve said that lenders are targeting low LTV borrowers because of their fears over restricted credit conditions and the protracted crisis in the eurozone.
This has sparked a fall in the number of lower income buyers, with purchase approvals falling fastest in the cheapest property brackets.
Loans for purchases below £250,000 fell from 36,187 in September to 35,772 in October.
Loans with a deposit of 10% or under – a typical deposit size for first-time buyers – accounted for just 1% of total lending for house purchases in October. By way of contrast, this figure was 13% in October 2007.
The overall decline was cushioned by consistent activity in the wealthier price brackets. The number of loans for properties over £375,000 remained stable.
As a result, these wealthier buyers continue to represent a disproportionate share of the market.
October’s figures confirmed the reversal of the positive summer trend of higher LTV lending and increasing numbers of first-time buyers.
They also help justify the latest Credit Conditions Survey from the Bank of England, which said a sustained period of tight funding conditions would prevent lenders from growing their loan books in Q4 2011.
Richard Sexton, director of e.surv, said: “With perhaps the notable exception of buy-to-let lending, lenders are in no position to begin growing their loan books in the current climate, although noises coming from some sections of the market would have you believe otherwise.
“Credit conditions are sclerotic, and banks are under intense pressure.
“Banks are becoming more cautious, having upped their high LTV lending over the summer in a bid to increase their market share. They are now focusing on wealthier borrowers.
“It looks like they are still pushing high LTV mortgages, but the truth is, the criteria are so strict, most first-time buyers aren’t eligible.”
Evidence enough that average house prices are now distorted due to the sales mix. Let's stop pretending that they are not actually declining.
"Lending for house purchase slumped for the second successive month in October, it has been forecast.
Valuers e-surv say that house purchase approvals fell from 50,967 in September to 50,382 in October, a 1.1% decline. It said that first-time buyers and those with smaller deposits were hit worst.
The business, which is part of the LSL group, makes its monthly forecasts based on its own data, and claims to be within 1% of official figures when they are published.
The firm says that although house purchase mortgage approvals rose 6.7% year-on-year in October, the same month in 2010 was a weak comparator.
The latest month-on-month fall was triggered by the tightest lending conditions seen since February.
The average deposit size was 40% in October, with lower income buyers struggling to meet criteria for high LTV products. Loans with a deposit of 15% or under accounted for less than one tenth of all lending in October, compared to almost a quarter in 2007.
e-surve said that lenders are targeting low LTV borrowers because of their fears over restricted credit conditions and the protracted crisis in the eurozone.
This has sparked a fall in the number of lower income buyers, with purchase approvals falling fastest in the cheapest property brackets.
Loans for purchases below £250,000 fell from 36,187 in September to 35,772 in October.
Loans with a deposit of 10% or under – a typical deposit size for first-time buyers – accounted for just 1% of total lending for house purchases in October. By way of contrast, this figure was 13% in October 2007.
The overall decline was cushioned by consistent activity in the wealthier price brackets. The number of loans for properties over £375,000 remained stable.
As a result, these wealthier buyers continue to represent a disproportionate share of the market.
October’s figures confirmed the reversal of the positive summer trend of higher LTV lending and increasing numbers of first-time buyers.
They also help justify the latest Credit Conditions Survey from the Bank of England, which said a sustained period of tight funding conditions would prevent lenders from growing their loan books in Q4 2011.
Richard Sexton, director of e.surv, said: “With perhaps the notable exception of buy-to-let lending, lenders are in no position to begin growing their loan books in the current climate, although noises coming from some sections of the market would have you believe otherwise.
“Credit conditions are sclerotic, and banks are under intense pressure.
“Banks are becoming more cautious, having upped their high LTV lending over the summer in a bid to increase their market share. They are now focusing on wealthier borrowers.
“It looks like they are still pushing high LTV mortgages, but the truth is, the criteria are so strict, most first-time buyers aren’t eligible.”
Evidence enough that average house prices are now distorted due to the sales mix. Let's stop pretending that they are not actually declining.
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Comments
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average house prices are now distorted due to the sales mix.
Which is why Halifax and Nationwide mix adjust.
To remove distortion from the sales mix.
And both Halifax and Nationwide show prices up last month, and Nationwide is now year on year positive too.
:beer:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
All that gobbledegook proves is that we are bouncing along the bottom .... nothing, absolutely nothing, points - or indicates - falling prices except for the usual autumn/winter slowdown.
There ain't no crash, now, tomorrow, yesterday - ever - get used to it people.Bringing Happiness where there is Gloom!0 -
All that gobbledegook proves is that we are bouncing along the bottom .... nothing, absolutely nothing, points - or indicates - falling prices except for the usual autumn/winter slowdown.
There ain't no crash, now, tomorrow, yesterday - ever - get used to it people.
Absolutely 5hitting yourself:rotfl:
The crash is still going strong around here:)0 -
All that gobbledegook proves is that we are bouncing along the bottom .... nothing, absolutely nothing, points - or indicates - falling prices except for the usual autumn/winter slowdown.
There ain't no crash, now, tomorrow, yesterday - ever - get used to it people.
Are you blinded by your own circumstance, see your home as an investment, rather than a place to live...
We saw the same ole rubbish before the last crash, and the crash before that - perhaps you should never say never, that way looking foolish isn't so easy.0 -
Absolutely 5hitting yourself:rotfl:
The crash is still going strong around here:)
As we have agreed before, you live in a rather unpleasant area of the country and it's taking a big hit ....... one market.
As we also agree, I live in the leafy suburbs of the South - where everyone wants to live - and so the prices are increasing ..... the second market.
I do hope you get that £25,000 terraced house you have your eye on - it may well be £20,000 next week!
At what point will you leave Mummy and buy? I'm genuinely interested ... you will need to make a call at some point - and you may get lucky and hit it right (chances are, though, that prices will be well on the up by the time you jump).Bringing Happiness where there is Gloom!0 -
Are you blinded by your own circumstance, see your home as an investment, rather than a place to live....
On the contrary, my home is a home .... a very pleasant home and I love living here - not many get to live as I do, I am fortunate that I worked damned hard and made a success.
The fact that it is increasing in value is a side issue ... only to be realised when I take my equity and retire.Bringing Happiness where there is Gloom!0 -
Depends where you look - and at how much.
Im looking at £100k to £130k in the East Midlands. I cannot afford to live in the south even if I wanted to - and anything above £150k is just out of reach to the majority of the UKs population (basing that on average earnings).
Houses in that price range - in that area are still falling.0 -
paulmapp8306 wrote: »Depends where you look - and at how much.
Im looking at £100k to £130k in the East Midlands. I cannot afford to live in the south even if I wanted to - and anything above £150k is just out of reach to the majority of the UKs population (basing that on average earnings).
Houses in that price range - in that area are still falling.
I get attacked whenever I say what my property is worth - so, I won't bother this time - all I will say is that £100,000 may get you a Studio Flat (where the lounge is also the bedroom, bed comes out the wall).
Houses here, of around £700+ are selling very fast, and at asking prices.Bringing Happiness where there is Gloom!0 -
I get attacked whenever I say what my property is worth - so, I won't bother this time - all I will say is that £100,000 may get you a Studio Flat (where the lounge is also the bedroom, bed comes out the wall).
Houses here, of around £700+ are selling very fast, and at asking prices.
MrRee, where exactly is that?Dont wait for your boat to come in 'Swim out and meet the bloody thing'
0 -
As we have agreed before, you live in a rather unpleasant area of the country and it's taking a big hit ....... one market.
As we also agree, I live in the leafy suburbs of the South - where everyone wants to live - and so the prices are increasing ..... the second market.
I do hope you get that £25,000 terraced house you have your eye on - it may well be £20,000 next week!
At what point will you leave Mummy and buy? I'm genuinely interested ... you will need to make a call at some point - and you may get lucky and hit it right (chances are, though, that prices will be well on the up by the time you jump).
You say that you are in receipt of the winter warmth grant, therefore are over 65 as far as I am aware?
Which is either a (nother) lie as you then went on to talk of downsizing when you retire, or I am totally gobsmacked that you represent a select section of pensioners.0
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