It will almost certainly not come as a surprise to learn that the number of mortgages being given to home buyers has hit a new low in April, according to the Bank of England. The Bank started to record the data 15 years ago and Aprils figure, 58,000 approvals, was the lowest since records began. The previous lowest figure for approvals was March with 63,000.
The April figures were actually worse than economists had expected and are further evidence that the housing market is getting gloomier by the month as banks tighten lending and buyers are put off because of economic fears.
Despite the slowdown, the Bank is likely to keep interest rates as they are this week amid fears over soaring oil and food prices – which could take the cost of living to nearly double the official targets for later this year.