RICS: Decline in approvals will hit first-time buyers

02 2008
The Royal Institution of Chartered Surveyors (RICS) has today highlighted the increasing difficulties first-time buyers face against the backdrop of the slump in the UK housing market.

New Bank of England figures suggest that mortgage approvals have fallen from 63,000 in March to 58,000 during April, representing the lowest total since the data was first released in 1999.

With approvals over the past three months at 192,000 - just 1,000 short of the figure recorded in the final quarter of 1992 at the height of the previous crash - RICS has outlined the implications for potential first-time buyers.

Chief economist Simon Rubinsohn told Headline Money website: "The latest weak data on mortgage approvals highlights the continuing problems facing borrowers trying to secure finance to purchase property.

"Lenders are continuing to tighten up on the conditions accompanying new loans making it hard for first-time buyers to take advantage of the modest fall in house prices seen over the part few months."

Despite the latest gloomy statistics and predictions, the private rental market appears to be in rude health, as youngsters seek to find a more affordable way of living independently of their families.
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