The Bank of England (BoE) has released its latest official figures, which reveal that the level of lending to first time buyers from January to March this year has dropped, indicating that the UK housing market is actually slowing down once more.
The data has shown that in the final quarter of 2009, the number of mortgages approved to people buying a property was 174,000. This figure dropped to 144,000 in the first three months of 2010.
Net lending has dropped to its lowest levels since it was in negative levels in July 2009. The net lending figure is the sum that doesn?t include mortgage redemptions and repayments, and fell to as low as ?318 million in March.
It is important to note that this particularly disappointing figure can be attributed in part to the activity resulting from the changes to the Government?s stamp duty holiday, which meant that many buyers rushed through purchases at the end of 2009 on lower priced properties. Industry experts also believe that the General Election is also having a negative impact on the housing market.
Brian Murphy, head of lending at mortgage brokers Mortgage Advice Bureau, said: ?There may well be a slowdown in mortgage activity in the April and May data, as many prospective house buyers are currently putting everything on hold until there is greater clarity around how the next Parliament, hung or otherwise, will deal with the deficit. Before they commit to a long-term purchase, many prospective borrowers want to know just how hard their pockets will be hit in the months and years ahead.?
