London’s housing market is suffering a lull due to the number of mortgage approvals for house purchases being nearly 5% lower in August 2018 compared to the same time last year.
Gross mortgage lending for the entire market was £24.1bn, which is 1.2% lower than last year. This is according to the latest Finance Figures in the UK.
However, remortgaging figures in London have risen by a surprising 9.2% throughout the month of August. This is thought to be because current home owners are looking to finalise more favourable deals before higher interest rates come in.
The market is set to remain fairly flat and those wishing to sell their homes must realise that the change they are hoping for is not going to come any time soon. Consumer confidence is down across the board and is being reflected massively on the high street as well as in the property market.
The Bank of England recently released some data that indicated mortgage lending had picked up in the second quarter of this year. There was a rise in the number of first time buyers coming onto the property market which suggested that things were on the up. However, remortgaging continued to dominate over the summer months, meaning the balance was, once again, shifted.
Pete Tyler, director at UK Finance, said: “Homeowners took advantage of a competitive market to lock in attractive deals. Growth in card spending remained fairly strong, reflecting the boost to retail sales due to the warm weather as well as the growing use of credit cards as preferred means of payment.” The Property Buying Company will be watching this space to see how the property market in London fairs in the final quarter of the year.