Twelve month in a row mortgage approvals in the UK fall
The Bank of England announced that mortgage approvals in the UK fell for the twelfth month consecutively in July of this year. This could result in further falls in house prices.
Mortgage approvals are around a third of what they were last year, and are at an all time low since 1993. Mortgage approvals were around 35,000 in June and dropped to 33,000 in July.
Economist at BNP Paribas, Alan Clarke said, "It's at painfully low level so we are still facing the prospect of falling prices for at least another year."
Howard Archer economist at Global Insight said, "While we now expect the Bank of England to cut interest rates before the end of 2008, we believe that it will not move before November when there is likely to be growing evidence that the deepening economic slowdown and rising unemployment are diluting underlying inflationary pressures."
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