Drop in mortgage lending from building societies
The average building society in the UK has seen a dramatic drop in the number of new mortgages to home buyers, according to latest reports.
Figures from the Bank of England suggest that in June, building societies approved 15 loans for home purchases each week, compared to 34 per week in June last year.
The report also revealed that some smaller societies with a limited number of branches have stopped lending altogether, meaning that more people are sticking to renting flats and houses in London.
Rachel Howarth, head of marketing at the Coventry Building Society, told the BBC that "things have been a lot quieter in the last few weeks".
"People are holding back because house prices are falling, especially first-time buyers," she added.
Experts are now warning that with no sign of the housing slump coming to an end, lending may fall by 80 or 90 per cent by the end of the year.
This comes after news that mortgage sales are already down by half in the past year and approved mortgage lending is down by 70 per cent.
Published 14th August, 2008
© 2008 Estates IT Limited
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The average building society in the UK has seen a dramatic drop in the number of new mortgages to home buyers, according to latest reports.