Commenting on yesterday’s British Bankers Association mortgage approval data, Simon Rubinsohn RICS chief economist said: "Data released from the British Bankers Association show that the number of mortgage approvals for house purchase slipped back in March following three successive monthly increases.
Although this is, on the face of it, a disappointing piece of data, RICS is not inclined to believe that the pick-up in activity in the housing market from historically low levels is already running out of steam. Crucially, the RICS 'new buyer enquiries' series rose further last month and our suspicion is that this will translate into higher transactions levels over the coming months notwithstanding the drop in mortgage approvals in March. The decision in the Budget to extend the stamp duty holiday alongside the extension of the credit guarantee scheme to include mortgages should help provide some much needed support for the lower end of the housing market."
