London Report: Mortgage lending down but price of houses still rising

MORTGAGE approval numbers are expected to fall to a 10-month low of 62,000 for May, after the introduction of tough new rules in the Mortgage Market Review (MMR) in April.

Howard Archer, of IHS Global Insight, said: “This would be down from 62,918 in April, 66,563 in March and a 74-month high of 75,838 in January.”

Meanwhile, the Nationwide housing survey is expected to show a 0.5 per cent increase in the month-on-month housing sale price in June, taking the year-on-year increase to 11.2 per cent.

June’s manufacturing purchasing managers’ survey (PMI) is expected to show a 0.4 per cent for monthly output. Construction and service figures are also forecast to be strong.

The corporate week starts today with results from iEnergizer, while Ocado and St Modwen Property give figures tomorrow. Anite, Carillion, Persimmon, Topps Tiles and Tullow Oil update the market on Wednesday, while Accsys Technologies, Greene King, NCC Group and Poundland Group deliver numbers on Thursday.

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