Mortgage lending rate slows
The number of mortgages approved for house purchase edged up in October, but has not shown the strong growth of previous months.
Figures from the British Bankers’ Association show 42,238 loans were approved for home purchase in October, up from 42,073 in September. The average for the previous six months is 37,705, suggesting the rate of increase is slowing.
The value of house purchase loans approved rose slightly, from £6 billion in September to £6.1 billion.
BBA statistics director David Dooks said: ‘The longer it takes to emerge from recession, the longer we will see households and businesses continue to borrow with caution.’
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: ‘Access to the property market remains challenging particularly given the rebound in residential prices in recent months.
‘The lack of supply of property coming onto the market is proving to be an increasingly important obstacle to a more meaningful pick up in transaction levels.’
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