The number of approvals for loans secured on dwellings increased to 143,000 in September, up from 135,000 in August. However most of this was down to an increase in remortgaging, where the figure rose by 8,000 to 72,000 cases. By contrast loans for house purchase only increased by 1,000 cases to 33,000 in September, up from 32,000 in August.
The increase in total net lending to individuals in September (£2.4 billion) was above the increase in August, but below the previous six-month average.
The twelve-month growth rate slowed further, to 5.4%, and the three-month annualised growth rate fell by 0.4 percentage points to 1.9%.
For loans secured on dwellings the twelve-month growth rate slowed further, to 5.3%. The three-month annualised growth rate fell by 0.2 percentage points to 1.5%.
The increase in net consumer credit in September (£0.3 billion) was below that in August and below the previous six-month average. Net credit card lending rose by £0.3 billion, below the increase in August. Net other loansfell slightly in September. The annual growth rate of consumer credit slowed by 0.7 percentage points, to and advances 6.0%; the three-month annualised growth rate fell by 1.5 percentage points, to 3.9%.
Nicholas Leeming, director of propertyfinder.com, commented: ‘At last it looks like the rot has stopped in the housing market. The prospect of sharply lower interest rates, the suspension of stamp duty at the lower end and the increasing perception that property prices are looking more attractive has put a floor under housing transactions. Prices will take longer to recover, but despite this, just under 60% of people in our October survey actually think this is a good time to buy property. For the time being, lack of mortgage availability is holding most people back but interbank lending rates are now falling, giving more cause for hope. We are by no means looking at a speedy recovery, but today's figures show that there is still life in the housing market.'
