In 2008 there were 21, 600 loans for house purchase in Wales, this is a 48% decline from 41, 700 in 2007 and the lowest number of loans since 1974. The lack of activity meant a sharp decline in conveyancing in Wales.
The UK as a whole experienced a similar decline (-49%) as lending activity slowed
due to a shortage of funding for mortgages and reduction in the number of active
lenders in the market. Consumer demand for mortgages has also waned in the face
of an uncertain economic outlook, rising unemployment and falling house prices.
House prices declined throughout the UK over the course of 2008 partly as a result
of the decline in mortgage lending. House prices fell 10% in Wales in 2008,
compared with an 8% decline across the UK.