Lending to individuals: August 2006
The increase in total net lending to individuals in August (£9.9 billion) was lower than the increase in July but in line with the previous six month average. The twelve-month growth rate was unchanged from July at 10.4 per cent. The three month annualised growth rate fell by 0.3 percentage points to 10.2 per cent.
Within the total, the increase in net lending secured on dwellings (£9.1 billion) was below the increase in July but above the previous six month average. The twelve-month growth rate was unchanged from July at 11.2 per cent. The three month annualised growth rate fell by 0.2 percentage points to 11.3 per cent. The number of loans approved for house purchase (at 119,000) was lower than in July while approvals for remortgaging (at 97,000) were in line with July’s outturn. Approvals for other purposes (at 76,000) were higher than in July.
Commenting on the figures, Milan Khatri, the Royal Institute of Chartered Surveyors (RICS) chief economist, said: "Despite a slight drop in mortgage approvals in August, activity is still at high levels and housing demand is robust. August mortgage approvals were 119,000 compared to 120,000 in July but 16 per cent higher than the average for the past decade.
"We expect the buoyancy of the economy and strong consumer finances to put continued upward pressure on house prices and the recent upward spurt in the market to be sustained, though further interest rate rises remain on the cards for November."
