press releases

Press Release - 02/09/04

DRAMATIC DECLINE IN MORTGAGE ENQUIRIES AS CONSUMER CONFIDENCE PLUNGES

A SHARP fall in enquiry levels for new mortgage lending has been recorded by personal finance data analysts Moneynet.co.uk.

The figures (see table below) reveal a significant decline - almost 50 per cent - in the numbers of buyers looking to take out new mortgages between March 2004 and the end of August.

Moneynet data shows that 37,000 people made mortgage enquiries through the service at the beginning of March, a period of intense activity in the housing market.

But by the end of last month those enquiry levels had plummeted to just 20,000, as the impact of five successive base rate rises began to impact on buyers' confidence.

As the Bank of England recently revealed that the number of mortgage approvals fell by 14 per cent, from 112,000 down to 97,000 - the biggest slump since the depths of the property recession in 1993, Moneynet chief executive Richard Brown warned that the fall off in enquiry levels was hard evidence of a sharp slowdown in the UK's formerly robust property market and would ultimately impact further on mortgage approvals.

"The figures speak for themselves: we had anticipated a tailing off in enquires in the wake of faltering consumer confidence, but getting on for a 50 per cent drop suggests it is going to be a difficult autumn period, particularly for those trying to sell property."

And as Nationwide Building Society this week revealed that house price rises have all but ground to a halt in many areas with price falls in some former hotspots, Moneynet figures also show a fall in the average property values: the average house price fell from a peak of £207,000 in May, to just £196,000 in August, also suggesting that sellers were struggling to get higher asking prices.

"House price falls go hand in hand with a fall off in enquiries for new mortgages," said Richard Brown.

"It stands to reason that if fewer people are taking out mortgages then fewer properties are being sold. And that means price falls are inevitable as sellers chase fewer buyers.

"If we get another interest rate rise in the coming months then I believe we could be looking at a particularly difficult climate for the housing market," added Brown.

Mortgage enquiries via Moneynet 1/3/04 - 31/8/04

MARCH	37,000
APRIL	33,500
MAY	30,000
JUNE	27,000
JULY	24,500
AUG	20,000

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005