Housing market dip despite cheap loans

The housing market suffered a dip in activity in October, figures yesterday revealed, despite mortgages becoming more affordable than at any time for eight years.

There were 44,500 loans worth £6.5 billion issued in the month, according to the Council of Mortgage Lenders, which was 8 per cent down on the previous month and 5 per cent less than a year ago. The fall came even though low rates mean first-time buyers now have to pay only about 12.3 per cent of their income on interest payments, the lowest level since January 2004. Affordability for movers also improved.