Business briefs: Mortgage slide a warning on prices | Persimmon

Published on 04/07/2012 00:00

MORTGAGE approvals have dropped off further from a two-year high seen earlier this year, fuelling speculation that house prices are likely to soften in the coming months.

There were 51,098 mortgage approvals for house purchase in May worth £7.6 billion, the lowest figure since March and significantly down on a 25-month high in January, Bank of England figures showed.

Consumer credit, which includes personal loans, overdrafts and credit cards, increased by £732 million in May, the biggest rise since March.

Persimmon building well

Housebuilder Persimmon hailed an “excellent start” to its new strategic plan by completing more new homes, attracting more viewers and selling them for a higher fee, giving it confidence for the full year.

Despite evidence that construction activity is falling and the housing market is in the doldrums, Persimmon yesterday followed other property developers by saying that market conditions had been relatively stable.

The firm, the biggest player in Scotland, legally completed 4,712 homes in the first six months of 2012, up 6 per cent on 2011. The average selling price was 7 per cent ahead at £171,400, sending turnover up 13 per cent to £805 million.

The group has also improved its margins and is investing in new land.