Rics unsurprised by BBA mortgage statistics

Date:Wednesday 26th November 2008
Author: Susanna Kavka

New mortgage approval figures from the British Bankers' Association (BBA) showing a decline in October were "little surprise", the Royal Institution of Chartered Surveyors (Rics) has said.

Responding to the BBA's finding that October saw a monthly drop of eight per cent, Rics highlighted the plight of first-time buyers, who are suffering from "stringent deposit requirements" and also noted that confidence is low and unemployment is increasing.

"Aggressive interest rate cuts by the Bank of England in recent months and the prospect of more to come before Christmas will take time to filter through into increased house sales," it said in a statement.

The BBA's report showed that the number of mortgages approved for purchasing homes was 52 per cent less than it had been a year before.

In October 2007, the figure was 45,105 but last month it was 21,584.

David Dooks, BBA statistics director, said: "Mortgage approvals remained low, consumer credit was subdued and people used their deposits to fund spending in October."