The figures showed the increase in total net lending in July (£7.7 billion) was lower than in June (£8.5 billion) and lower than the previous six-month average of £9.1 billion. Within this, the increase in net lending secured on dwellings (£6.5 billion) was again weaker than in June (£7.1 billion) and the six-month average of £7.3 billion. The 12-month growth rate fell to 10.4 per cent in July from 10.8 per cent in June.
The number of loans approved for house purchase was slightly higher than in June. July saw a seasonally adjusted 97,000 mortgage approvals compared to 96,000 in the previous month. Approvals have edged up 2.1 per cent over the past three months.
A spokesperson for the Royal Institute of Chartered Surveyors (RICS) said the results confirmed a gradual recovery in activity remained on track in July: “Compared to a year earlier, mortgage approvals are only 1 per cent lower and contrast with a more dramatic fall of 42 per cent last November, confirming that market conditions have now stabilised.”
“Household sentiment has held up in the face of a mild economic and labour market slowdown. In addition, a growing sentiment over the summer months that interest rates had peaked provided prospective buyers
with further confidence to enter the housing market,” they added.
Andy Pratt, chief operations officer at Alexander Hall, agreed that August’s rate cut improved confidence and people who had previously stayed away from the market were now coming forward.
He said: “We’ve definitely seen the market picking up over June, July and August – an increase in applicants and also of clients putting in offers and having them accepted. House prices are unlikely to rocket or drop and the market is levelling.”
