MORTGAGE sales in the north fell by almost 20 per cent in July on the previous according to new market figures.
Data from analytics firm Equifax Touchstone shows a 18.5 per cent in mortgage sales last month in comparison to the June figure. In the UK-wide figures the north ranks behind only Scotland, which suffered the biggest monthly slump (19.8 per cent) out of all regions.
Overall mortgage sales in the UK decreased by £1.8 billion in July, a 10.8 per cent fall on the previous month.
Buy-to-let figures were resistant to the general decline, down by just 0.2 per cent (£3.9 million) to £2.6 billion, while residential sales dropped by 12.8 per cent (£1.8 billion) to £12.2 billion. Overall, mortgage sales for the month totalled £14.8 billion, up 10.8 per cent year-on-year.
The average value of a residential mortgage in July was £199,286, up six per cent on the previous year (£188,115) and £159,721 for buy-to-let (2016: £158,415).
All regions across the UK suffered a significant fall in mortgage sales the north west of England performing best with a monthly decline of 5.7 per cent recorded. London sales fell by 8.4 per cent from June to July.
Director of Equifax Touchstone, John Driscoll said the figures showed how volatile the mortgage market can be.
"Sales have tumbled in July, with every region suffering substantial declines as buyers are put off by continuing political and economic uncertainty, coupled with the worrying gap between inflation and wage growth. These circumstances may be further compounded by the potential for an interest rate hike as early as September, driven by continued pressure on the pound.
“On a more optimistic note, mortgage sales are up over 10 per cent year-on-year and a dip in sales for July is not uncommon; however, as the summer period comes to a close, the long-term outlook for the market still remains very unclear.”
