'Growing discrepancy' between buyer interest and approvals

Posted: 03 Mar 2009 09:01:22 GMT

The Royal Institution of Chartered Surveyors (Rics) has released a statement highlighting the growing disparity between the number of potential buyers registering interest for homes and the mortgage approval figures published by the Bank of England.

Rics has highlighted three consecutive months of growth in the number of potential buyers registering interest, yet the Bank's mortgage approval figures published yesterday (March 2nd) show no significant rise in the number of deals made in the same period.

Buyers are being held back largely due to the high deposits required for mortgages at present, which is forcing some buyers to lower their expectations regarding the kinds of properties they can afford.

Another option for determined buyers, however, is to buy a home online, which could prove cheaper than buying through an estate agent as buying directly can reduce the costs charged by middle men.

In the mean time, however, Simon Rubinsohn, chief economist at Rics, suggested that, "Bank of England mortgage approvals data for January continues to highlight the urgent need for more funds to be injected into mortgage market.

"The January seasonally adjusted figure of 31,000 was unchanged from the December number and just 4,000 above the November low. This disconnect between buyer enquiries and actual mortgages approved highlights the inability of many buyers to access the property market."



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