This figure is 13 per cent lower than in July and just 3 per cent higher than in August 2003.
The CML data showed house purchase lending in August fell back by 18 per cent to £11.9 billion. This was the first time since August last year that lending for house purchase did not show a year-on-year increase.
The proportion choosing variable rates dropped to 56 per cent in August from 60 per cent in July but above the 51 per cent of last August.
Similarly figures from the Building Societies Association (BSA) revealed approvals for loans decreased to £3.6 billion in August 2004 from £3.9 billion in August 2003.
Adrian Coles, director-general of the BSA, said: “We have reached a turning point in the housing market. Net advances are 51 per cent higher than a year ago but approvals are well down suggesting that lending will decline in the autumn.”
And the Rightmove house price index for September showed, following August’s 2.0 per cent fall, prices are static as the usual Autumn pick-up fails to materialize.
The index conveyed prices are weaker for lower value homes with terraced and flats down an average of £5,000 since July while stock levels of homes for sale are higher than for almost a year with demand low compared with Spring 2004 or this time last year.
Ray Boulger, senior technical manager of Charcol, said: “The differing reports on the future of the housing market, coupled with the five quarter point base rate increases since November 2003, were bound to have an affect on purchasers' confidence.
“However, the fall in lending for remortgages was more modest at £10.4 billion, 6 per cent less than July but 7 per cent higher than August 2003.”
