Henry Pryor, high end estate agent, said: “High house prices require big
mortgages so whilst the amount being lent remains eye-watering, the number
of mortgages being offered is falling. Some of this decline can be blamed on
MMR the ‘hammer to crack a nut’ reaction from the powers that be to what
they felt were failings in the mortgage market but part of this is simply
house buyers calling time on ever-increasing asking prices.”
Buyers, lenders and surveyors alike have been spooked by fierce rhetoric from
Mark Carney who has fingered the hot housing market as the biggest threat to
the UK’s economic recovery – which has had a dampening effect on the number
of people applying for mortgages as they await further news of interest rate
While the lengthy mortgage approval process has disrupted agreed sales, estate
agents have also seen cautious surveyors downgrade house prices after the
point at which offers have been accepted.
“We are increasingly seeing a gap between agreed sales and sales that
complete,” said Mr Wilson.
This is driving a higher proportion of aborted sales as vendors then break the
deal and relist the property, chasing the higher price, he explained.